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Get answers to specific questions below
- 0:54- The Opportunity Zone Program is new. Can you describe when it was finalized?
- 3:45- Can you describe what a capital gain is vs ordinary income?
- 3:45- Why did the government choose capital gains for the Opportunity Zone Program?
- 7:00- Do I have to invest all of my capital gains into one fund?
- 8:39- What are the most common ways that people have a capital gains event? (Sale of stock, sale of real estate, and sale of a business)
- 12:46- I’ve heard about the three main tax benefits associated with the program - can you discuss those main benefits?
- 16:49-What is the biggest tax benefit associated with investing into the Opportunity Zone Program?
- 18:49- Does the Program also work for short term capital gains?
- 20:58- Why is the Opportunity Zone Program so popular with investors who have a capital gains event from a sale of stock?
- 23:57- As a tax expert, what would you say is the main advantage of a Fund structured as an LLC vs a REIT?
- 26:09- Urban Catalyst being structured as an LLC allows our investors to take advantage of three major programs:
- 28:13- Can you talk about depreciation and depreciation recapture in the context of an Opportunity Zone Fund?
- 31:23- Is there no depreciation recapture for the Opportunity Zone Program? Do these passive losses convert to active losses and can offset ordinary income?
- 32:46- A very important part of the opportunities on strategy has to do with refinance distributions. Are those refinance distributions taxable? If not, why not? And how does this work?
- 35:46- A lot of our investors have other investments, of course, and they’re getting multiple K-1s per year.
- 38:19- What are some of the recommendations that you are providing to your clients who have a stock gain?
- 39:43- A lot of our investors from the first fund, their capital gains event was from a sale of stock; many of them come from working for their company stock options; can you describe the difference in ownership stock?
- 43:12- As we know, the IRS set the program up so that you only get that third key benefit after you’ve held your investment for 10 full years. Do we know exactly what the IRS’ reasoning was on having that specific 10-year date?
- 45:48- Does California conform with the national program and how does that affect our investors who live in-state vs out of state?
- 48:47- It sounds like this program has some amazing tax benefits associated with it; when you recommend the Opportunity Zone Program to your clients, what are the most important things that you look for?
- 49:43- What tax forms do investors need to submit to let the federal government, the state government know that they’ve invested in a Qualified Opportunity Fund?
- 52:19- Why did you decide to recommend us vs other OZ Funds?
WHAT IS A QOZ?
Qualified Opportunity Zones were created by the 2017 Tax Cuts and Jobs Act. These zones are designed to spur economic development and job creation in communities throughout the country by providing tax benefits to investors who invest eligible capital into these communities.
Eligible Gains
Sale of Stock
Sale of Stock
Many of our investors have equity via their company stock options or are active investors in the stock market and experience capital gains event.Sale of Business
Sale of Business
Selling your share of a business makes you eligible to potentially defer your capital gains
Sale of Property
Sale of Property
Whether you sell your primary or investment property, investing into an OZ Fund is a great way to keep some of the equity and potentially avoid paying taxes on your capital gains.
Potential Tax Benefits
DEFERRAL OF CAPITAL GAINS TAXES
When you sell an asset that triggers an eligible capital gain, you typically have a 180-day window from the day you sell the asset to invest in the Opportunity Zone Fund. Once you do that, your capital gain taxes are deferred until 2027.
NO FEDERAL TAXES ON FUND PROFIT AFTER 10 YEARS
If you hold your investment in the Opportunity Zone Fund for 10 years you won't owe any federal taxes on profits earned on your investment in the fund.