Opportunity Zones and Why Should You Invest?

The Tax Cuts and Jobs Act, passed by Congress in the closing days of 2017, introduced major changes to the U.S. economy, including the creation of a new investment model with unprecedented tax incentives for capital gains: Qualified Opportunity Zones and Opportunity Funds! Opportunity Zones are census tracts of low-income areas designated by state governors (or, in the case of Washington, D.C., the mayor) and certified by the U.S. Department of the Treasury. Their purpose is to spur economic development and job creation in distressed communities by making it more appealing to investors to invest in such places.

Unlike other Opportunity Funds buying raw land with plans to develop in the future, Maxus Opportunity Fund is successfully purchasing real estate already under construction! This greatly reduces entitlement and development risk while providing shorter timelines to asset stabilization and thus cash flow to investors!
– David Johnson, Chief Executive Officer of Maxus Opportunity Fund I, LLC

In fact, investors in Opportunity Funds may defer and reduce realized capital gains on the principal invested, and even possibly eliminate capital gains tax burden on returns earned from the sale of appreciated qualified investments in Opportunity Zones. While certain tax incentives are available to Opportunity Fund investors immediately, in general, the most powerful tax incentives are available to long-term investors.

We would like to provide you an opportunity to partner with us in Maxus Opportunity Fund I, LLC (“MOF I, LLC”), an Opportunity Fund with a primary focus on acquisitions of controlling interests in multifamily and commercial real estate projects, including its current investments in Metropolitan Apartments, Birmingham, AL and Town Park Lofts, Kingsport, TN. MOF I, LLC will be a vehicle which will provide the investor with significant potential tax advantages for capital gains deferral and investment gain.

Investors in Qualified Opportunity Fund

As mentioned, taxpayers who recognize capital gains from sale or disposition of investments (e.g. stock portfolio investments, sale of real estate, etc.) can elect to defer recognizing the gain if they invest corresponding amounts in equity interests in a Qualified Opportunity Fund within 180 days of the sale or disposition. There is no dollar limit on the amount of gain that can be deferred.

We believe this is one of the most beneficial tax reforms in decades. Learn how MOF I, LLC can help you potentially take advantage of this opportunity.

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