It’s a brave new world of investing, which comes along with a lot of new rules and regulations. Please browse answers to the most commonly asked questions regarding opportunity funds and investments. If you still need further information, please contact us.
What is the process?
Individuals who are realizing a capital gain across all asset classes can invest those monies on a tax deferred basis, as long their gain is invested in a qualified opportunity fund within 180 days of the sale or exchange. The process is very easy. Agree to subscription agreement, transfer funds, receive stock certificate and tax statement. The whole process is usually completed within 48 to 72 hours.
What are the investment restrictions?
The capital gains must be invested in qualified opportunity funds that have 90% of their assets invested in qualified opportunity zones.
How do I qualify?
All capital gains on the sale or or exchange of any property to an unrelated party invested within 180 days are eligible for the tax benefits.
What’s the minimum amount?
The minimum investment is $50,000.
Can I invest proceeds from a failed 1031 exchange?
Yes, but you should consult with your tax advisor to confirm specific tax treatment.
What can I invest in?
Qualified opportunity stock, partnership interest, or business property are all eligible investments. The investUS Opportunity Fund is qualified opportunity stock only—meaning you are purchasing an equity interest in the company and its holdings.
How do I invest?
Investors can invest in opportunity funds by selling an asset and triggering a capital gain, then subsequently placing that gain in a qualified opportunity fund with 180 days of the original sale. There is a subscription agreement that is signed by the investor and a wire transfer agreement.
How long is the investment period?
The program allows for a stepped-up basis depending on the holding period. A 5-year hold will grant the investment a 10% stepped up basis. A 7-year hold grants the investment an additional 5% of stepped up basis, totaling 15% on the original basis. Finally, after 10 years, investors permanently avoid any capital gains tax on any gains from the opportunity zone fund investment.
What is the investment rollover period?
Investors have 180 days to invest realized capital gains.
Do I have to use an intermediary, like I would in a 1031?
No. You can take receipt of the gains, as long as you reinvest within 180 days. As an Opportunity Fund we have to certify with the IRS. You receive a tax statement at the end of the year.
Do I have to pay the original deferred taxes?
In part. The original taxes are deferred until December 31, 2026 (or the date of a sale, whichever is earlier). Investors will have to recognize a portion of the deferred gains that year. Investors may benefit from the step up in basis at years 5 (10%) and 7 (another 5%) if they reach either holding period before December 31, 2026.
Where are the opportunity zones?
Opportunity zones are currently being designated by the governors of each state. Each state may designate 25% of the eligible census tracts in their state. As of right now, all 50 states and Puerto Rico have submitted and have been approved for designated Opportunity Zones.
Are all designated opportunity zones economically distressed?
No. Opportunity zones must meet certain criteria to qualify. Census tracts with over 20% poverty and median family income no greater than 80% of the area medium will qualify. There are also contiguous zones, which are census tracts that are adjacent to a designated opportunity zone, and also do not exceed 125% of the median family income of that same opportunity zone.
Can I invest new money besides realized capital gains?
New monies can be invested in an opportunity fund, however the investor would not enjoy the same tax benefits as realized capital gains. Consult your tax advisor to confirm specific tax treatment.
What happens to my money if: a project within the fund fails; there is economic turmoil; the markets change?
These investments carry the same risks that come with most real estate investments and investment funds in general.
Get Started Now
Your investment helps create economic opportunities and an even brighter future, not just for local communities, but for all of America. Learn more with zero obligation, or fill out an application and get started right away.
INVESTUS OPPORTUNITY FUND, LLC IS A QUALIFIED OPPORTUNITY FUND MANAGEMENT FIRM , WHICH IS AUTHORIZED AND REGULATED BY IN ACCORDANCE WITH INDUSTRY CUSTOM.
Articles featured on this page are for informational purposes only. This is not an offer to sell nor a solicitation to buy investUS Qualified Opportunity Funds. That can only be done by our current confidential Private Placement Memorandum (“CPOM”). Securities offered by investUS Opportunity Fund, LLC For accredited Investors only. Limited liquidity. The shares being sold in this offering have not been approved or disapproved by the Securities and Exchange Commission or any state’s securities division. Nor has the Securities and Exchange Commission or any state securities department passed upon the accuracy or adequacy of the CPOM or the disclosures provided therein. Any representation to the contrary is a criminal offense.