What are opportunity zones ?

Opportunity Zones are census tracts generally composed of economically distressed communities that qualify for the Opportunity Zone designation according to criteria outlined in 2017’s Tax Cuts and Jobs Act. Investors receive tax benefits comparable to a 1031 real estate exchange with the primary differentiator being that invested capital gains can come from any asset class. This incentive drives financial opportunity into communities that might otherwise be overlooked. Opportunity zones bring Wall Street Caliber investments to Main Street America.

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What are the Tax Saving benefits of investing in an Opportunity Zone Fund?

An investor who has a capital gain by selling an asset like stocks or real estate can receive tax benefits if they roll that gain into an Opportunity Zone Fund within 180 days. There are three advantages to rolling over your gains into an Opportunity Zone Fund:

01

Defer

Roll Capital Gain

02

Step Up

Increase Basis

03

Exclude

Tax Free Growth

Interactive Timeline

*Reference Cushman & Wakefield Spotlight Timeline interactive graphic

Illustration Example of an Opportunity Zone Investment

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DAY O

Assets can be any assets capable of generating capital gains. Examples include: securities, partnership interests and real property
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DAY 0-180

In contrast to 1031 exchange: Investor has no restrictions on the use of the $50M basis in the original investment. The investment does not need to be like-for-like. Capital gain from stoke can be invested in a QOF focused on real estate investments.
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DAY 0 - YEAR 5

An investor can sell interest in a QOF while maintaining tax benefits provided that the process are reinvested within the same or different QOF within 180 days.
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YEAR 5 - YEAR 7

If our investor sold the $100M QOF investment after having held it for five to seven years, capital gains tax would only be assessed on $90M of the original gain plus capital gain on any additional gain from the QOF investment itself
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YEAR 7 - YEAR 10

Investor’s capital gains tax would only be assessed on $85M of the original gain plus capital gain on any additional gain from the QOF investment itself.
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12/13/2026
HARD ASSESSMENT DATE

Only gains readded and reinvested in opportunity zone funds before December 31, 2019 and December 31, 2021 are eligible for 15% and 10% original capital gains tax reduction benefits , respectively , provided for under the program.

The hard date creates an incentive for investors to make immediate use of the program so as to maximize capital gains deferral and reduction benefits
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YEAR 10 ONWARD

For example, if the $100M QOF investment was made in 2019 and is sold in 2029 (10 years later) for $200M, then the investor would not have the pay capital gains on the $100 million on QOF investment gain, saving -$20M or adding 0.2x to the investment multiple.

- The investor would also have deferred the -$20M in original capital gain due from stock sale from 2019 to 2026 and reduced the tax liability by 15% or -$3M

- Total value enhancement from the use of the program would amount to $23M or an additional 0.23x multiple and further value from tax deferral

If you have a $1M capital gain through stock, bond, business or property sale. Instead of paying $238,000 in taxes, you invest $1M Splitting basis and gains using qualified opportunity funds. into the Accredited Capital Tax Advantage Fund, an Opportunity Zone Fund that is focused on triple bottom line returns. Let’s say in 2030, the Fund returns almost $2M including the original investment considering 8% ROI. No taxes are due on the $1M gain. You'll only pay $202,300 in deferred capital gains on first initial sale. Below is the comparison calculation that shows this scenarios

Initial Investment
Capital Gains 1,000,000
Expected Annual Return 8%
Capital Gains TaxRate 23.8%
Initial Stock Investment after initial capital gains Tax 762,000
Initial Opportunity Zone Investment 1,000,000
5 YEAR HOLD
Stock Performance 1,034,517
Opportunity Zone Performance 1,143,432
7 YEAR HOLD
Stock Performance 1,176,485
Opportunity Zone Performance 1,342,641
10 YEAR HOLD
Stock Performance 1,434,934
Opportunity Zone Performance 1,956,639
Gain by Investing in Opportunity Zone for 10 years 521,706
*The expected annual return is used only as an example and is not intended to represent expected performance of any specific investment.

How do I Invest in opportunity zones ?

You can invest through a Qualified Opportunity Fund which provides a tax incentive for investors to re-invest unrealized capital gains, from any source, into a fund that is dedicated to making equity investments in businesses, real estate, and other business assets located in Opportunity Zones.

What is the Accredited Capital Tax Advantage Fund?

The Accredited Capital Tax Advantage Fund was created by a team of experienced real estate professionals, investors, technologists, and developers to professionally invest unrealized gains of investors into Opportunity Zones to generate triple bottom line - environmental, socioeconomic and financial. The fund will distribute capital to accelerate innovation in a way that positively affects a city's social impact. We are experts in managing our investments, executing real estate projects, and providing transparency through the process.

The driving force for the fund is to deliver top-tier financial returns for our investors (First Bottom Line), while working with communities to enable socioeconomic (Second Bottom Line), and environmental wins (Third Bottom Line).

How is Accredited Capital different to other Opportunity Zone funds?

Early Capital Deployment

We look for projects that are shovel ready and deals where capital can be deployed quickly and effortlessly.

Asset Diversification

Accredited Capitals main focus areas are single family housing, multi-family housing, shared living, and trailer parks. The focus is to minimize the risk of investment while maximizing the returns.

Geographical diversification

Accredited Capitals team values diversification by investing in different geographical areas to minimize risk.

Equity alignment and co-investment from all parties

Substantial alignment from operators, tenants, managers and investors safeguard our capital preservation approach.

Substantial expertise and local teams

The Accredited Capital team has substantial experience in real estate acquisitions, ownership and structured investments in the communities we focus in and have verified experienced local team members to work on projects.

Custom Investment Strategy

We work very closely with clients who want custom solutions for the investment in terms of acquiring a particular asset

OZ Rank

Accredited Capital has committed to measuring the impact of the social and economic metrics and has begun work on the OZ Rank rating system with a team that has experience managing over $1T in real estate.

Licensed Professionals

Accredited Capital is administered by a team that includes a Managing Partner who is a licensed attorney and another who has an active series 7 license.

What are the steps to invest my unrealized capital gains with Accredited Capital?

Get news and updates from Accredited Capital

IRS ESTIMATED*