Answers to the most commonly asked questions regarding opportunity zones, opportunity funds and investments are available below. If you 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.
In certain situations where an individual is facing the expiration of the 180 day window we can expedite the process to same day.
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 exchange of any property to an unrelated party invested within 180 days are eligible for the tax benefits.
What’s the minimum investment amount?
The minimum investment is $250,000.
Can I put my 1031 money in?
Yes. Opportunity Funds are designed to be easier with less hassle than 1031 Exchanges.
What can I invest in?
The Green Horizon Opportunity Fund is a qualified opportunity zone fund that will be making investments for the benefit of investors in a diversified portfolio of middle market industrial companies.
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. 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 year 5 (10%) 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 put new money besides 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.
What happens to my money if: a project within the fund fails; there is economic turmoil; the markets change?
These investments carry market risk. Risks and disclosures are fully described in the Private Placement Memorandum.
Disclaimer
The Green Horizon Opportunity Fund site and its content do not constitute a solicitation for the purchase or sale of any securities or investments. Users agree to conduct their own due diligence prior to making or advising on any investment decision, and nothing herein should be viewed as complete or a sufficient basis for any such decision. Green Horizon Opportunity Fund, LLC is not a registered broker-dealer, funding portal, or investment adviser. The information on this website does not constitute investment advice and should not be relied upon as such. Green Horizon Opportunity Fund, LLC does not advise any party on raising capital through debt or equity securities offerings. The information on this site is for discussion purposes only and is not an offer or solicitation to purchase or sell any securities or financial products. None of the information on this site takes into account any person’s personal objectives, financial situation, or needs and you must determine whether the information is appropriate in terms of your particular circumstances. We recommend you obtain financial, legal and taxation advice before making any financial investment decision.
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