...If an investor holds the gains in an opportunity zone fund for five years, they can exclude 10 percent of those gains from taxation. If they hold them for another two years (for a total of seven), they can exclude another five percent from taxation — meaning that taxpayers can exclude up to 15 percent of the value of reinvested capital gains from their taxable income, Eastman said.
Finally, any gains achieved after the investment is made in an opportunity zone fund are tax-free, if the investment is held for at least ten years.
...“It's the only part of the tax code where you get to fully write off your capital gains taxes.”
“Investors in real estate opportunity zone funds projects should expect mid-teen returns and 6 to 10 percent cash-on-cash distributions after stabilization,” said Quinn Palomino, principal at Virtua Partners, via email. She added that returns would be lower for social impact funds and higher for single-asset funds.
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