Introducing the Wizard of O.Z.

ARE YOU READY TO TAKE ADVANTAGE OF THE MOST SIGNIFICANT

TAX LEGISLATION RELATING TO REAL ESTATE DEVELOPMENT

SINCE THE CREATION OF THE 1031 EXCHANGE?

KOSMONT PULLS BACK THE CURTAIN & SHOWS YOU HOW

Created as part of the 2017 Tax Cuts and Jobs Act, Opportunity Zones (O.Z.) were created to unlock unrealized capital gains money and encourage investment in low income census tracts through the use of tax deferrals and tax incentives. Qualified Opportunity Funds serve as the conduit for investment, subject to guidelines.

Opportunity Funds can provide early cash flow for projects in qualified census tract areas. The clock is ticking on the associated tax benefits, some of which expire in 2026.

Opportunity Funds are being established NOW

a nd beginning their search for investments.

What are the primary benefits of an O.Z.?

Federal tax savings may be significant*

Deferral of capital gains taxes until the earlier of 2026 or upon exit
Step up in Basis – 5 year hold = basis increase of 10%
Step up in Basis – 7 year hold = basis increase of 15%
10 year hold – no capital gains on post acquisition gains

* None of the information included or provided herein constitutes a recommendation and is not to be construed as tax or legal advice. Consult your tax accountant or legal advisor regarding any potential investment.

Can O.Z. work with EIFDs, Tax Increment, & other financing vehicles?

YES

The State of California has been incentivizing housing projects, investment in low income census tracts and pushing towards a Green economy . As an example, front end financing from an Opportunity Fund can provide much needed capital towards an Enhanced Infrastructure Financing District (EIFD), jump starting a new tax increment District.

HOW CAN KOSMONT HELP YOU?

Let Kosmont be your yellow brick road to creating a match between the designated Opportunity Zones Census Tracts, opportunities for development, and sources of private sector investment. We can guide you down the correct path and help you scope your project development goals, determine the most appropriate financing vehicles for public participation, identify potential grant funding sources and create a compelling project for Opportunity Funds seeking investments. T o learn more, contact us today .

879 Opportunity Zones have been approved in California including:

Los Angeles County

274

San Bernardino County

Riverside County

San Diego County

Alameda County

Fresno County

Sacramento County

Kern County

Orange County

Be sure to check out the BisNow article titled "Developers, Attorneys Tackle the Most-Asked Questions About the Opportunity Zones Program" featuring Larry J. Kosmont, CRE ® , President and Carolyn Petty, Sr. V.P. of Kosmont Companies.