Fund Benefits – Green Horizon Fund

$6.1 Trillion Dollars in unrealized gains

Investors in the stock market have done particularly well since the recession. The S&P 500 nearly tripled between 2009 and 2016. The Dow Jones Industrial Average rose more than 140 percent between 2009 and 2017. Investors are sitting on significant unrealized capital gains that could go a long way toward jump-starting communities. Opportunity Zones create enough incentive to attract the first investor or developer into a distressed area, which becomes a tipping point for additional investment.

Defer Capital Gains Tax

Under the program, an investor can defer capital gains tax on realized gains if the gains are invested in a qualified Opportunity Fund within 180 days of the sale which created that gain. All capital gains on the sale or or exchange of any property to an unrelated party invested within 180 days are eligible for the tax benefits.

Adjusted Basis

Initially, the tax basis is deemed to be zero. However, if the Opportunity Fund investment is held for at least 5 years, the basis is increased to 10 percent of the deferred gain. Finally, if the Opportunity Fund investment is held past December 31, 2026, the investor will be deemed to realize the deferred capital gains as of December 31, 2026. In addition, the investor will pay capital gains tax on the amount of recognized gains as of that date (determined as described above, with basis adjustments if applicable).

The basis is then adjusted to equal the amount of the original Opportunity Fund investment. Finally, if the investor holds the Opportunity Fund investment for at least 10 years, the basis is deemed to be the fair market value of the Opportunity Fund investment and no capital gains tax will apply to the appreciation on the Opportunity Fund investment.

Promote Business Development

The Opportunity Zone Investment program is structured to promote development in economically distressed communities by providing tax incentives for Opportunity Zone Investing. Investors divert their investment gains – tax-deferred – into a Qualified Opportunity Fund that invests in businesses and property development within a Qualified Opportunity Zone. Additional tax incentives are available the longer the Opportunity Zone investment is held.

Aid in the Success of Others

The Qualified Opportunity Zone program has the potential to induce measurable investments in designated low-income communities. This is an exciting new tool for designated rural and distressed communities throughout our state and the rest of the country, that also provides a meaningful tax benefit to investors and another business opportunity for financial intermediaries. What role will you play?

info@greenhorizonfund.com

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.