Opportunity Zone Investing

What is a Qualified Opportunity Zone?

A Qualified Opportunity Zone (QOZ) is an economically distressed community where new investments, under certain conditions, may be eligible for favored tax treatment.  Localities qualify as QOZs if they have been nominated for designation by a state, the District of Columbia, or a U.S. territory and that nomination has been certified by the Secretary of the U.S. Treasury via his delegation of authority to the Internal Revenue Service.  QOZs were included in the tax code by the Tax Cuts and Jobs Act on December 22, 2017.

What is a Qualified Opportunity Zone Fund?

A Qualified Opportunity Zone Fund (QOF) is an investment vehicle that files either a partnership or corporate federal income tax return and is organized for the purpose of investing in QOZ property.

What types of gains are eligible for deferral if invested in a QOF?

Gains that may be deferred are called “eligible gains.”  They include both short-term and long-term capital gains and qualified 1231 gains, but only gains that would be recognized for federal income tax purposes before January 1, 2027, and that are not from a transaction with a related person.  For you to obtain this deferral, the amount of the eligible gain must be timely invested in a QOF in exchange for an equity interest in the QOF (qualifying investment).  Once you have done this, you can claim the deferral on your federal income tax return for the taxable year in which the gain would be recognized if you do not defer it.

This Opportunity Zone Investment’s main features include:

  • Open to Accredited Investors only on a first come first served basis, minimum investment is $20,000
  • Funds invested must be realized capital gains from prior investments or transactions within the past six months;
  • Taxes on invested original capital gains will be deferred until 2026 tax year
  • Tax deductions flow through to investors each year throughout the investment, and
  • OZ investment gains are tax free once held for 10 years.

Additional Benefits Include:

  • Deferral of tax due through tax year 2026
  • Taxpayers will receive depreciation deductions passed through in their annual k-1 statements resulting in tax savings on their personal returns. This depreciation does NOT need to be recaptured at time of assets sale if sale occurs at Year 10.

For non-JIDI accredited investors who would like to participate, you can access Accredited Investor Questionnaire (AIQ) by clicking here or request a DocuSign copy by e-mailing David Rutherford at [email protected].  Once investors complete the AIQ and JIDI approves it, they will be sent the Private Placement Memorandum package plus all future offerings and communications.

Useful Links

JID Investments:  www.jidinvestments.com

Internal Revenue Service:



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