Impact OZ Fund: A New Approach to Community Development and Investment
Impact OZ Fund, a company with an innovative approach to community development and investment, is making waves in the real estate industry. Based in Salt Lake City, Utah, the company was established in response to the 2017 Tax Cuts and Jobs Act, which introduced a new tool for promoting investment in underserved communities across the United States. This tool, known as "Qualified Opportunity Zones" (QOZs), is specifically designed to encourage long-term private sector investments in distressed communities.
The QOZ provision aims to incentivize investors to reinvest their unrealized capital gains into low-income urban and rural communities through "qualified opportunity funds" (QOFs). In return for their investment, investors can receive a series of tax breaks tied to their long-term commitment to the QOFs.
Impact OZ Fund has taken this concept and established several QOFs for projects and asset classes that not only demonstrate strong real estate fundamentals but also further the policy objectives of the QOZ legislation. By doing so, the company is helping to drive economic growth and revitalization in struggling communities.
One of the key benefits of investing in a QOF through Impact OZ Fund is the opportunity to defer taxes on capital gains for up to seven years. This applies to any capital gain, such as the sale of a company, stock, or property. To qualify for the maximum deferral, the deferred gain must be recognized on the earlier date of when the Fund interest is sold or December 31, 2026.
Additionally, investors can qualify for a partial reduction in their tax liability after holding assets in a QOF for a certain period. After five years, investors are eligible for a 10% step-up in basis on their original gain. After an additional two years (for a total of seven years), investors qualify for a total step-up of 15%. To qualify for the maximum 15% tax exclusion on the original capital gains, investors must invest by December 31, 2019.
Finally, after 10 years of investment in a QOF, any appreciation on the original fund investment may be entitled to permanent exclusion from taxable income of all capital gains related to the sale or exchange of QOZ assets. In other words, investors can enjoy tax-free growth on their investment.
Impact OZ Fund is leading the way in the real estate industry by leveraging the power of QOZs and QOFs to promote long-term investment and community development in underserved areas. With its innovative approach and commitment to revitalizing struggling communities, Impact OZ Fund is poised to make a lasting impact on the economic landscape of the United States.
For more information on Impact OZ Fund and its projects, visit the company's website at http://www.ozimpactfunds.com/. Impact OZ Fund is located at 1371 E 2100 S 200, Salt Lake City, Utah 84105, US.