O-Zone Advisors of Arizona

In 2018, the U.S. Department of the Treasury released the long-awaited guidance on the Opportunity Funds and Opportunity Zone Investments. For site selection, acquisition, development services, management, and disposition, CRE Options has become the Opportunity Zone Advisors of Arizona.

Opportunity Zones

Opportunity Zones, designed by the U.S. Department of the Treasury to spur economic development and job creation, are low-income census tracts nominated by governors and certified by the treasury department, that incentivise investors to put capital to work financing new projects and enterprises in exchange for certain federal capital gains tax advantages. 

Opportunity Funds

Opportunity Funds are private sector investment vehicles that invest at least 90 percent of their capital in qualifying assets in Opportunity Zones. U.S. investors currently hold trillions of dollars in unrealized capital gains in stocks and mutual funds alone—significant untapped resources for economic development. Opportunity Funds will enable a broad array of investors to pool their resources in Opportunity Zones, increasing the scale of investments going to underserved areas. 

Opportunity Zones offer investors the following incentives for putting their capital to work: 

  • A temporary tax deferral for capital gains reinvested in an Opportunity Fund
    The deferred gain must be recognized on the earlier of the date on which the Opportunity Zone investment is sold or December 31, 2026. 
  • A step-up in basis for capital gains reinvested in an Opportunity Fund
    The basis of the original investment is increased by 10% if the investment in the qualified Opportunity Zone fund is held by the taxpayer for at least five years, and by an additional five percent if held for at least seven years, excluding up to 15% of the original gain from taxation. 
  • A permanent exclusion from taxable income of capital gains
    This is an exclusion of capital gains tax from the sale or exchange of an investment in a qualified Opportunity Zone fund if the investment is held for at least 10 years. (Note: this exclusion applies to the gains accrued from the investment in an Opportunity Fund—not the original gains.) 

Contact your local tax expert for more details and updated changes. 

Request More Information about Opportunity Zone Investments