What are Opportunity Funds?

An Opportunity Fund is a new tax-advantaged investment vehicle created by the Investing in Opportunity Act – part of the tax reform passed in late 2017. The goal is to help spur greater private-sector investment in targeted communities across the country called Opportunity Zones.

What are opportunity zones?

Opportunity Zones are designated census tracts selected by the state and federal governments for economic development. Opportunity Zones can be found in every state and in urban, suburban and rural areas.

How can I invest?

The final tax regulations are expected before the end of 2018. In the interim, EquityMultiple is focused on identifying the right real estate partners, strategies and properties.Sign up to be notified when eligible investments become available.

Why invest in an Opportunity Fund?

Qualifying investments offer three unique and compelling tax advantages – investors can defer paying federal capital gains tax from recently sold investments until December 31, 2026, reduce that tax payment by up to 15%, and pay as little as zero taxes on their Opportunity Fund investment if held for 10+ years. Investors can also help spur economic growth in historically underinvested neighborhoods.

What kind of gains are eligible for tax deferral?

Investors may defer capital gains tax on any recently sold investment – including the sale of stocks, bonds or real estate – so long as those gains are rolled over into an Opportunity Fund investment within 180 days of sale.

WHY INVEST IN BRUIN CAPITAL?

TAX INCENTIVE

By investing in the Gravitas Fund, you can: (1) defer capital gains tax from the sale of appreciated assets until December 31, 2026, (2) lower capital gains tax by 10% after 5 years, and an additional 5% after 7 years due to an increase in the basis of the appreciated assets used to buy the fund interest, and (3) permanently eliminate capital gains tax after 10 years.

PLANNED DEVELOPMENT

Sebastian Partners controls a 135-acre parcel which will be part of a 287-acre master planned community within a designated Qualified Opportunity Zone. The site will include 1000+/- residential units, plus approximately 60 acres of commercial and 11 acres of multi-family property in the development.

ACCESSIBILITY

The minimum investment in a QOZ Fund is $50,000, making it a highly accessible investment vehicle. With contracts already in the works to sell residential lots to national, publicly-traded homebuilders, investors can expect to see a return within 24-36 months.

*Sebastian Partners and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

OPPORTUNITY ZONE

The Opportunity Zone Program is a tax incentive established in the Tax Cuts and Jobs Act of 2017, designed to encourage long term investment in “distressed communities.” It does this by allowing investors to re-invest current capital gains in those areas in an extremely tax-advantaged manner while also limiting the the capital gains liability on the funds investment.

HOW IT WORKS

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:

1 - DEFER

Prior Capital gains invested into the Opportunity Fund may be deferred until 2026 Investors can defer capital gains from the sale of non-like-kind assets by investing those gains in a Qualified Opportunity Fund (“QOF”) within 180 days of sale

2 - REDUCE

Investors can reduce tax liabilities by +10% if invested for +5 years Hold for 7+ years, and reduce the deferred tax you owe by 15% Hold for 5+ years, and reduce the deferred tax you owe by 10%

3 - PAY ZERO

Pay $0 in taxes on contributed capital gain on an Opportunity Fund held for 10+ years All additional capital gains in the QOF is eliminated if the interest is held for 10 years, all while capturing the unique tax benefits of investing in real estate during the 10-year old (including no depreciation recapture).

WHY INVESTMENT

Qualifying investments offer three unique and compelling tax advantages – investors can defer paying federal capital gains tax from recently sold investments until December 31, 2026, reduce that tax payment by up to 15%, and pay as little as zero taxes on their Opportunity Fund investment if held for 10+ years. Investors can also help spur economic growth in historically under-invested neighborhoods.

Investors may defer capital gains tax on any recently sold investment such as the sale of stocks, bonds or real estate, so long as those gains are rolled over into an Opportunity Fund investment within 180 days of sale.

OPPORTUNITY ZONE LOCATIONS

Opportunity Zones can be found all across the country in urban, suburban and rural areas. Drawing from governmental data sources, the map below is a powerful resource for investors and real estate firms to better understand Opportunity Zones. Use the map to see how these zones are distributed throughout the U.S. or look up a specific address to find out if falls within a designated Opportunity Zone.