Opportunity Zone Fund Benefits

Investing for Impact. Investing for High Yields.

Investment in institutional quality projects located across some of the fastest-growing markets in the United States.

  • Capital gains invested in a Qualified Opportunity Fund (QOF) within 180 days can defer and reduce tax liability. If held for 10+ years, appreciation in investment value becomes tax-free.
  • Cost segregation and bonus depreciation further mitigate tax and enhance cash flow. Cost segregation accelerates depreciation deductions, while bonus depreciation allows extra deductions for eligible property in its service year
  • Opportunity Zones also offer non-recapture of depreciation on assets held for 10+ years, aiding long-term investors.

 

369 Funds bring together individuals and family offices to access exceptional private investment opportunities while leveraging significant federal tax incentives.

Tom Jordan

Managing Director, 369 Funds

RETURN BENEFITS OF QOZ FUND:

  • $ in 000s
    sample ROI
    Without OZ Tax Benefits
    sample ROI
    With OZ
    Tax Benefits

  • $25,000

    capital gains created from sale of assets

    $25,000

  • ($6,000)

    tax on initial capital gains

    $0

  • $19,000

    initial investment

    $25,000

  • $85,500

    exit proceeds
    (example)

    $112,500

  • $0

    deferred tax on capital gains
    initial investment

    $5,100
    Deferred Tax Paid in 2026
    (reflects 15% Basis Set Up)

  • $15,960

    tax on initial capital gains (SUBSEQUENT INVESTMENT)

    $0
    All Future Capital Gains Tax Free

  • $69,540

    after-tax proceeds(example)

    $107,400

    +54%

    net proceeds

  • *Disclaimer: This chart assumes investment prior to 2019. As the investment in 369 Funds Opportunity Zone Fund 1 LP will occur after December 1st, 2022, the step-up in basis will not be available unless Congress extends the current timetable through pending legislation.

Please scroll right to view more -> -> ->

How it Works:

  • In 2017, the Federal government passed the Tax Cuts and Jobs Act, which created the Opportunity Zone Program.
  • Investors, individuals, or entities, receive tax benefits by making an equity investment in Qualified Opportunity Funds, which in turn invest in areas designated as Qualified Opportunity Zones (QOZs).
  • While other investors have treated the OZ program as primarily a real estate investment vehicle, 369 has looked beyond traditional real estate-based structures to help growing businesses take full advantage of the program.

  • For investors, combining the Opportunity Zone program with traditional growth equity funds can potentially eliminate capital gains tax typically generated by private equity investments.