An Opportunity Zone Fund is a new investment vehicle created as part of the Tax Cuts and Jobs Act of 2017 to incentivize investment in targeted communities called Opportunity Zones.
Opportunity Zones are census tracts designated by state and federal governments targeted for economic development. View Searchable Zone Map
Opportunity Funds allow investors to defer federal taxes on any recent capital gains until December 31, 2026, reduce that tax payment by up to 15%, and pay as little as zero taxes on potential profits from an Opportunity Fund if the fund is held for 10 years.
An investor who has triggered a capital gain by selling an asset like stocks or real estate can receive special tax benefits if they roll that gain into an Opportunity Fund within 180 days. There are three primary advantages to rolling over a capital gain into an Opportunity Zone Fund:
The Sortis Opportunity Zone Fund intends to focus on investing in high-quality real estate and business investments with long-term growth potential. We’re taking an opportunistic approach to investing and applying it to this exciting new way to invest. Send us a note below and one of our fund managers will contact you with more detailed information about our opportunity zone business plan.
If you’re planning to realize a sizable capital gain in the near future, or are simply interested in harvesting a portion of an existing unrealized capital gain, Opportunity Zone Funds are one of the most exciting investment developments in recent history.
As of July 2, 2018, there is uncertainty regarding the Opportunity Zone program, as the US Department of the Treasury has not released final guidance on many of the questions left open by the Tax Cuts and Jobs Act of 2017. These open questions include, but are not limited to: (a) what kinds of gains, other than capital gains, if any, can be properly rolled into an Opportunity Fund, (b) how much time an opportunity fund will have to deploy the capital it has raised, (c) tax treatment of gains in an opportunity fund pass-through partnership, etc. Accordingly, the foregoing discussion of the various aspects of the Opportunity Zone program is based upon positions that we believe to be reasonable given the statute as currently written, draft regulations, and prior Treasury and IRS precedent; however, there can be no assurance that the forgoing discussion will ultimately prove to be correct as Treasury begins issuing guidance and regulations on the Opportunity Zone program. Given such uncertainty, each prospective investor should consult with their personal tax advisors before making any investment into an opportunity fund, including the Sortis Opportunity Zone Fund.
Sortis is not a registered broker, dealer, investment advisor, investment manager or registered funding portal. The securities offerings on this site are available only to "Accredited Investors" – generally, natural persons must have a net worth of over $1 million (exclusive of residence) or income in excess of $200,000 individually or $300,000 jointly with a spouse. The securities are offered in reliance on an exemption from the registration requirements of the Securities Act of 1933, as amended, and are not required to comply with specific disclosure requirements that apply to registration under the Securities Act. Neither the Securities and Exchange Commission nor any state regulator has passed upon the merits of or given its approval to the securities, the terms of the offerings, or the accuracy or completeness of any offering materials. The securities are subject to legal restrictions on transfer and resale and investors should not assume they will be able to resell their securities. Investing in securities involves risk, and investors should be able to bear the loss of their entire investment. All investors should make their own determination of whether or not to make any investment, based on their own independent evaluation and analysis.
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