OPPURTUNITY ZONES and FAQs
WHAT IS AN OPPORTUNITY FUND?
An Opportunity 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.
WHAT ARE OPPORTUNITY ZONES?
Opportunity Zones are census tracts designated by state and federal governments targeted for economic development.
WHY INVEST IN OPPORTUNITY FUNDS?
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 investment is held for 10 years.
HOW DOES OPPORTUNITY FUND INVESTING WORK?
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 fund:
1. Defer the payment of your capital gains until Dec 31, 2026.
2. Reduce the tax you owe by up to 15% after 7 years.
3. Pay zero tax on gains earned from the Opportunity Fund.
INTRODUCING THE DIGITALBIT OPPORTUNITY FUND
The DigitalBit Opportunity Fund intends to focus on investing in high-quality real estate in major US cities with long-term growth potential. We’re taking the same simple, low-cost approach we use in all of our offerings and applying it to this exciting new way to invest.
The DigitalBit Opportunity Fund is operational and has already acquired these assets, Take a look at our project portfolio. Our team is actively working to identify additional properties for future acquisitions.
RESEARCH : https://home.treasury.gov/news/press-releases/sm0341
RESEARCH : https://www.curbed.com/2018/4/12/17227124/investment-opportunity-zones-economic-development
FAQs : https://www.irs.gov/newsroom/opportunity-zones-frequently-asked-questions