Opportunity Fund

Orion Realty NYC is looking at taking advantage of the newly created Opportunity Fund investment vehicle for its investors. Being active and already present in the NYC tri-state area, the goal is to identify key locations and projects that would qualify as opportunity funds in or near Jersey City, NJ.

The fund will focus on “substantially improving” the assets acquired, by spending more than the purchase price within 30 months of the assets acquisition.

What are Opportunity Funds?

An Opportunity Fund is a new tax-advantaged investment vehicle created as part of the Tax Cuts and Jobs Act of 2017. The goal is to incentivize private-sector investment in targeted communities across the country called Opportunity Zones.

What are Opportunity Zones?

Opportunity Zones are census tracts designated by state and federal governments targeted for economic development.

Why invest in Opportunity Fund?

Qualifying investments offer three unique and compelling tax advantages:
1) Deferral:
Defer federal taxes on any recent capital gains until December 31st, 2026, earning investment along the way.
2) Reduce:
Reduce that tax payment by excluding up to 15% of original gain if invested prior the end of 2019, by 10% if invested prior to the end of 2021.
3) Exclusion:
Pay as little as zero taxes on profit if investment is held for 10 years in Opportunity Fund.
Note:
– If investment still in place by the end of 2026, investors will have to pay the reduced tax due then. Investor will need to have available fund for it.

What kind of gains are eligible for tax deferral?

Any capital gains tax on recently sold investments (stock, bond, real estate) as long as they are reinvested into an Opportunity Fund Investment within 180 days of sale.

How can I invest?

The final tax regulations are expected before the end of 2018. In the interim, Orion Realty NYC is focused on identifying the right real estate partners, strategies and properties.