Wealth Creation is about timing investments into the correct asset classes and leveraging good opportunities. While there is much debate on whether or not we are on the brink of a global and national recession it is essential to screen, assess the existing investment portfolio, and reconfigure the asset classes as required for enhancing returns on investments.
Regardless of the prevailing economic conditions, one of the fundamental focuses of the federal government is to ensure jobs for the workforce and socioeconomic development across all locations.
The Opportunity Zone program established by 2017’s Tax Cuts and Jobs Act, is a systematic initiative of real estate investment funds from the government for private investments in certain geographical zones with a focus on underfunded, low-income, and distressed communities.
Around 8700 zones have been designated by the state as opportunity zone and ratified by the IRS (Internal Revenue Services) and are potential investment grounds for wealth creation .
The program offers an opportunity for investment as real estate funds in the opportunity zones, and the returns gained from such investments are offered tax rebates leading to increased post-tax returns on investments under opportunity zone fund investments.
What are some of the upcoming criteria to follow for an investment to be deemed as an opportunity zone fund investment?
- 90% of a private equity fund’s money assets to be invested in “opportunity zones” for receiving preferential tax treatment.
- Opportunity funds must make “substantial improvements” to the investment properties in the designated opportunity zone.
- Adherence to TCJA (Tax Cuts and Jobs Act) and being compliant to the criteria which demands that improvements to the property should be at least equal to the original value paid by the fund for the property purchase within the guideline stipulated period.
- Certain nature of business investments in real estate investment funds as mentioned in the TCJA list do not qualify, despite the investments in the specific opportunity zone fund.
Compliance with acts and policies is the onus on investment funds, and for an individual investor to optimize wealth creation, it is paramount to choose the right kind of Investment fund companies that can see through the potential investments.
It is here that a private equity real estate company can change the game.
Some of the benefits of investing in our Opportunity Zone Fund are:
- Upon holding the investments for five years, the investments qualify for a 10% exclusion of the deferred gain on the real estate investment fund.
- On holding the investments for more than seven years, the exclusions of the deferred gains stand at 15% as a real estate investment fund
- Post ten years of investment holdings into an opportunity zone fund, the investor does not owe any federal income taxes on such investments as a real estate investment fund
With deep seated real estate market expertise fused with financial asset management skills backed by technology and proprietary analytics – 33 Holdings offers investors the right mix of real estate punditry and financial acumen.
33 Holdings helps to make the most of the Opportunity Fund as an investment vehicle and reap the benefits of real estate investment.
Engage with our team of experts today to know more about strategic real estate investment funds leading to wealth creation.