Opportunity Fund Intro
Learn why Opportunity Funds are the most exciting investment
to develop in recent history.
What is an Opportunity Fund?
Opportunity Funds are a new investment that receives preferencial tax treatment. Created by the Tax Cuts and Jobs Act of 2017, they incentivize investment in targeted census tracts called Opportunity Zones.
What Are Opportunity Zones?
Opportunity Zones are communities designated by state and federal governments, targeted regions where officials seek to spur economic development.
Why Invest in Opportunity Funds?
Opportunity Funds allow investors to (1) pay zero federal taxes on profits from an Opportunity Fund if held for 10 years and (2) defer federal taxes on any current capital gain taxes until 2027 while reducing that tax payment by 10%.
How Does it Work?
An investor with a captial gain from any sale (such as stocks, real estate, cars, jewelry, artwork, etc.) receives the following tax benefits if they invest that gain into an Opportunity Fund within 180 days:
Invest Capital Gains & Receive TAX-FREE Returns
When Investors place capital gains into an Opportunity Fund, those gains appreciate federal tax-free with zero federal tax due after 10 years.
Defer & Reduce Current Federal Capital Gain Taxes
Capital gains from the prior 180 days placed into an Opportunity Fund are allowed to defer federal tax payment until 2027 and reduce that payment by 10%.
Example
If a long term sale results in $1,000,000 profit and $238,000 federal capital gain taxes (23.8%), invest all of the $1,000,000 gain into an Opportunity Fund. Assuming an annual return rate of 9% simple, the post-tax value of the investment after 10 years is $1,900,000. The investor pays zero federal taxes on this gain. The only tax liability is $214,200, deferred until 2027 and a 10% reduced amount, from what would have currently been paid. As a result, post-tax earnings are more than double had they invested elsewhere.
(Stocks, Bonds, etc)
Opportunity Fund
Compare Your After-Tax Potential Returns
See for yourself how much you could profit in AAAmerican Opportunity Fund versus a traditionally taxed investment.
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Opportunity Zone Investment Guide
Learn about our offering and get an
overview of the Opportunity Zone Program with this guide.
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