Opportunity Zones Explained

Opportunity Zones create exciting possibilities for investors and for those that live in an Opportunity Zone or nearby.

These zones are generally described as economically distressed communities in need of investment and revitalization. Right now, there are about 9,000 Opportunity Zones in the United States, many of which have experienced a lack of capital and financial security for decades. Roughly 10% of the U.S. population lives in these neglected areas.


In December of 2017, the government enacted a bipartisan initiative for both public and private investment firms to invest in the underserved communities, offering significant tax benefits to support and bring capital to the zones in need.


The IRS issued over five hundred pages of tax regulations and created two new entities incentivizing investors to enter the program initiative.


This ground-breaking legislation will transform our underdeveloped areas and change the face of our nation.




In April of this year, 2022, Tocqueville Asset Management and CapZone Impact Investments announced equity investment in Veterans Victory Small Business Center, a multifamily housing Opportunity Zone project in Colorado Springs.


Veterans Victory Small Business Center is an enticing location for local businesses, with all the amazing amenities and community support, a place where we all want to live and grow, and a fantastic chance for investors to increase their financial gain.


“CapZone and Tocqueville are uniquely qualified to help the Veterans Victory Project because they have embraced the holistic vision of green real estate development as well as programs designed specifically for veterans who want to grow their businesses and innovative technologies. Embracing our “Think Whole Veteran” program with new innovative financing sources that, in turn, help us to deliver more measurable social impacts means we have their help transforming my vision into a new integrated system where Veterans can be together, collaborate to land new business, and build on the vast knowledge they developed during their time in the military to help themselves and their families prosper.” -Kim Kuhle, Founder and Manager of Veterans Victory


"CapZone and Tocqueville will develop a program that covers multiple sectors, not just real estate, with sustainable infrastructure to create long-term economic activity. This is an important differentiator, as the investors will develop with a multi-sectoral approach, rather than with an isolated commercial real estate investment."


This community is a game-changer and win-win for everyone!


“It is not enough to just be a tax advantaged investment, but the investment has to stand on its own in terms of the rates return and simultaneously benefit the community.” -Joseph Zock, Portfolio Manager at Tocqueville Asset Management


Veterans Victory is excited to have these types of investors filtering money into our Opportunity Zone, as it’s not just about dollar signs for them, but community impact and the service to our Veterans.


And, YOU can be a part of it!


The primary tax benefit for investors of qualified opportunity funds is that they can defer tax payments on capital gains realized from prior investments. More specifically, if an investor allocates capital gains from a prior investment into a qualified opportunity fund within 180 days from the sale date, then that person is eligible to defer tax payment on the gain until the opportunity fund is sold or Dec. 31, 2026, whichever comes first.


If you are interested in being a part of what's to come at Veterans Victory Small Business Center, contact Kim.Kuhle@vvsbc.com or 402-728-8722.


Resources:

· Business Wire

· Toqueville

· Bloomberg