Looking for a better way to diversify your portfolio?
Buying stocks, bonds, or property aren’t your only options.
Many of today’s top investors are turning to a newer investment strategy: Opportunity Zones.
What is an Opportunity Zone?
To drive economic development in low-income neighborhoods, the Tax Cut and Jobs Act of 2017 (TCJA) created Opportunity Zones (OZ), or “O-Zones” for short.
These areas of the U.S. — both rural and burgeoning lower-income urban communities — have historically been capital-deprived, but have potential for future growth.
In these specially designated areas, qualifying investments receive material tax benefits worth noting.
Why Should You Care About an Opportunity Zone?
Choose Opportunity Zones and you can:
- Re-invest any form of capital gains.
- Defer your taxes on your original capital gain until the end of 2026.
- Reduce your taxes by up to 15% when you invest in an Qualified Opportunity Fund for at least 7 years.
- Completely eliminate the tax on new capital gains from your Qualified Opportunity Fund investment after the 10-year mark.
That means compared to a typical portfolio, you have the potential to double your after-tax profits with an Qualified Opportunity Fund.
Explore Your Investment Opportunities Now
At Cadre, we meticulously rank the long-term growth potential of each Opportunity Zone to uncover the most attractive markets.
Read more about how our program stands out and become an investor today by following this link.
The views expressed above are presented only for informational and educational purposes and are subject to change in the future. Cadre makes no representations, express or implied, regarding the accuracy or completeness of this information, and the reader accepts all risks in relying on the above information for any purpose whatsoever. These materials are not intended to provide, and should not be relied upon for investment, accounting, legal or tax advice. Additionally, these materials are not an offer to sell or the solicitation of an offer to buy any securities or other instruments. Actual transactions described herein are for illustrative purposes only, are presented as of underwriting and are not indicative of actual performance, and were selected based on objective, non-performance factors such as asset-type, geography or transaction date, among others. Certain information presented or relied upon in this presentation has been obtained from third party sources believed to be reliable, however, we do not guarantee the accuracy, completeness or fairness of the information presented.
Opportunity Zones Disclosure: This discussion regarding “Opportunity Zones” is based on provisions of the Tax Cut and Jobs Act of 2017 (the “Jobs Act”) and relevant guidances, including, among other things, two sets of proposed regulations issued by the IRS and Treasury Department. A number of unanswered questions still exist and various uncertainties remain as to the interpretation of the Jobs Act and the rules related to Opportunity Zones investments. As such, we cannot predict what impact, if any, additional guidance, including future legislation, administrative rulings or court decisions will have on such unanswered questions and uncertainties and there is risk that any investment marketed as an Opportunity Zone investment will not qualify for, and investors will not realize the benefits they expect from, an Opportunity Zone investment.
Performance Not Guaranteed: Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections are not guaranteed and may not reflect actual future performance.
Risk of Loss: All securities involve a high degree of risk and may result in partial or total loss of your investment.
Liquidity Not Guaranteed: Investments offered by Cadre are illiquid and there is never any guarantee that you will be able to exit your investments on the Secondary Market or at what price an exit (if any) will be achieved.
1 Where the gain is earned through a partnership or joint venture that does not roll the gain into an O-Fund, an individual partner can choose to start their 180 day clock at the end of the tax year of that partnership. For more information, please refer to the Cadre FAQ.
2 Potentially double your after-tax profits compared to a typical portfolio refers to the calculated after-tax outcomes for a traditional portfolio and qualified opportunity fund portfolio using the After-Tax Returns Calculator above. Not a prediction or projection of investment performance.
This message is not an offer of securities or invitation to make an investment. Nothing contained herein should be relied upon as a guarantee, assurance, or representation. Please refer to the investment opportunity and memorandum for additional information and disclaimers. This message was sent by RealCadre LLC, 295 Lafayette St. New York, New York 10012. You are receiving this message because you are a client of Cadre or you signed up to receive messages from us. If you do not believe you should have received this message or want to unsubscribe from this list, please reply and let us know.
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