Opportunity Zone Discussion

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These MMPU units are for property located in New York City Opportunity Zones, and are intended for a limited number of select investors who desire to diminish capital gains taxes and additional tax benefits that are available.. Prospective investors should carefully review this Memorandum and the relevant documents referred to herein, with their tax advisor(s) before deciding to invest in the Company

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Opportunity Zones are one of the greatest tax incentives ever created. There is tremendous potential for High Net Worth investors to grow their wealth with Opportunity Zones.

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The Investing in Opportunity Act is the legislation that defines Internal Revenue Code Section 1400Z, otherwise known as the Opportunity Zones tax Incentive.The intent of  the program is to spur private capital investment into under-invested, economically  distressed communities. 

 

An investor who is subject to capital gains as the result of an asset sale can take advantage of the tax incentives of investing in a Qualified Opportunity Zone Fund, so long as the investment is made within 180 days of the capital gains event. 

 

There are three tax incentives for investing in a Qualified Opportunity Zone Fund.

1. Deferral​ of capital gains invested until December 31, 2026.

2. Reduction of Capital gains invested.The cost  basis on the original Capital gains invested in an QOZ fund can be stepped up by 10 percent after 5 years; and an additional 5 percent after 7 years, leading to a 15 percent reduction in capital gains tax.

3. Exclusion of gain on qualified opportunity zone property held for at least 10 years. 

ACCORDINGLY, ALL PROSPECTIVE MEMBERS SHOULD SATISFY THEMSELVES REGARDING THE POTENTIAL FEDERAL AND STATE TAX CONSEQUENCES OF PARTICIPATION IN THE COMPANY AND ARE URGED TO CONSULT THEIR OWN TAX ADVISORS, ATTORNEYS OR ACCOUNTANTS IN CONNECTION WITH ANY INTEREST IN THE COMPANY. EACH PROSPECTIVE INVESTOR/MEMBER SHOULD SEEK, AND RELY UPON, THE ADVICE OF THEIR OWN TAX ADVISORS IN EVALUATING THE SUITABILITY OF AN INVESTMENT IN THE COMPANY IN LIGHT OF THEIR PARTICULAR INVESTMENT AND TAX SITUATION.