Recent tax code changes provided for the creation of Opportunity Zones. An Opportunity Zones is a new community development program designed to encourage long-term investments in urban and rural communities nationwide as defined by the CDFI.
The code change establishes a tax incentive for investors who re-invest unrealized capital gains into Opportunity Zone Funds, such as the 4523 Opportunity Fund, a certified Opportunity Zone Fund.
Opportunity Funds allow investors to defer federal taxes on a recent capital gain until December 31, 2026, reduce that tax payment by up to 15%, and pay as little as $0 in taxes on profits from an Opportunity Zone if the investment is held for 10 years.
Our approach is to target real estate within Opportunity Zones and underwrite them as if no incentives exist. If the asset is worthy of investment without the incentives - the future return will be unprecedented.
"The biggest investment opportunity in a generation."