Opportunity Zone Investment

Is it a good idea?

Opportunity Zone Investing

Could save you up to 100% on Capital Gains Tax

$6.1 Trillion Dollars in unrealized gains

Investors in the stock market have done particularly well since the recession. The S&P 500 nearly tripled between 2009 and 2016. The Dow Jones Industrial Average rose more than 140 percent between 2009 and 2017. Investors are sitting on significant unrealized capital gains that could go a long way toward jump-starting communities. Enough incentive to attract the first investor or developer into a distressed area, which becomes a tipping point for additional investment.

Defer Capital Gains Tax

Under the program, an investor can defer capital gains tax on realized gains if the gains are invested in a qualified Opportunity Fund within 180 days of the sale.

Adjusted Basis

Initially, the tax basis is deemed to be zero. However, if the Opportunity Fund investment is held for at least 5 years, the basis is increased to 10 percent of the deferred gain. Holding the investment for at least 7 years, the basis is increased to 15 percent of the deferred gain. Finally, if the Opportunity Fund investment is held past December 31, 2026, the investor will be deemed to realize the deferred capital gains as of December 31, 2026. In addition, will pay capital gains tax on the amount of recognized gains as of that date (determined as described above, with basis adjustments if applicable).

The basis is then adjusted to equal the amount of the original Opportunity Fund investment. Finally, if the investor holds the Opportunity Fund investment for at least 10 years, the basis is deemed to be the fair market value of the Opportunity Fund investment and no capital gains tax will apply to the appreciation on the Opportunity Fund investment.

Economic Development

The Opportunity Zone Investment program is structured to promote development in economically distressed communities by providing tax incentives for Opportunity Zone Investing. Investors divert their investment gains – tax-deferred – into a  qualified Opportunity Fund that invest in businesses and property development within a Qualified Opportunity Zone. Additional tax incentives are available the longer the Opportunity Zone investment is held.

The Qualified Opportunity Zone program has the potential to induce measurable investments in designated low-income communities. This is an exciting new tool for designated rural and distressed communities throughout Tampa that also provides a meaningful tax benefit to investors and another business opportunity for financial intermediaries. What role will you play in the continuing growth and development of our beautiful state?

Sikari Qualified Opportunity Fund Now Accepting Investors

Opportunity Zone Investing Opportunity Zone Investment