Pay as little as $0 in capital gains on your next decade of investment returns.
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.
Opportunity Zones are census tracts designated by state and federal governments targeted for economic development.
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.
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:
the payment of your capital gains until Dec 31, 2026.
the tax you owe by up to 15% after 7 years.
tax on gains earned from the Opportunity Fund.
The Fundrise 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.
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Learn how investors can defer and reduce capital gains through this new program.
Through tax incentives alone, Opportunity Funds can potentially double after-tax returns.
Which program offers better tax advantages for real estate investors?
As of July 2, 2018, there is uncertainty regarding the Opportunity Zone program, as the US Department of the Treasury has not released 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 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 Fundrise Opportunity Fund.
The publicly filed offering circulars of the issuers sponsored by Rise Companies Corp., not all of which may be currently qualified by the Securities and Exchange Commission, may be found at fundrise.com/oc. For investors and potential investors who are residents of the State of Washington, please send all correspondence, including any questions or comments, to email@example.com.
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