INVESTOR TAX INCENTIVES
We use two separate tax incentive programs in our fund. This way our investors will receive a significant tax-free return in as little a 5 years.
Opportunity Zone (OZ) Tax Incentives
A Temporary Tax Deferral
for capital gains reinvested in an Opportunity Fund. The deferred gain must be recognized on the date the opportunity zone investment is sold or December 31, 2026, whichever comes first.
A Step-up in Basis
For capital gains reinvested in an Opportunity Fund. The basis of the original investment is increased by 10% if the investment in the qualified opportunity zone fund is held by the taxpayer for at least 5 years, and by an additional 5% if held for at least 7 years, excluding up to 15% of the original gain from taxation.
A Permanent Exclusion
From taxable income of capital gains from the sale or exchange of an investment in a qualified opportunity zone fund, if the investment is held for at least 10 years. Note: this exclusion applies to the gains accrued from an investment in an Opportunity Fund, not the original gains.
Qualified Small Stock Benefit (QSBS) Tax Incentives
This incentive provides investors tax-advantaged returns of the greater of 10 times their investment or $10M tax-free
Must be held for at least 5 years
The valuation must be less than $50M when the investment is made
Must be a Corporation (or an LLC taxed as a corporation)
These types of companies are not eligible:
Professional services (such as health, law, engineering, architecture, and brokerage services)
Banking, insurance, financing, leasing, or similar businesses
Mining or natural resource production or extraction
Operating a hotel, motel, restaurant, or similar business
We use this incentive as a backup in case if any of our companies get acquired before the 10-year OZ window is met or if investors invest non-capital gains into our fund.