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Wednesday, 28 November 2018 23:25

November 2018 Colorado Springs Entrepreneurs Group Meetup

Written by  Mike Schmidt

CSE Group Members:

Sorry for the late posting of the meetup and agenda for this month's meeting... It seems that sometimes there is just not enough hours in the day to get all your "punch list items" completed.

It's been a busy month and there have been a number of very interesting developments over the course of the last year in the area of "Opportunity Zones and Opportunity Funds"... If only we had a heads up on this 6 months ago ! You will have the same reaction when you find out what it's all about...

However, if you're not aware of or heard about the most innovative capital funding opportunity to come by in decades... then you might just want to plan on spending a couple of hours with us tomorrow night, (Thursday Nov 29, 2018) at 6PM at Library 21 C where we will provide a briefing about this new tax incentive and community investment platform that just might be the right kind of investment at the right time for many communities across the country.

When:   

About Opportunity Zones: (From Various Internet Sources)

Opportunity Zones are a new community development program established by Congress in the Tax Cuts and Jobs Act of 2017 to encourage long-term investments in low-income urban and rural communities nationwide. The Opportunity Zones program provides a tax incentive for investors to re-invest their unrealized capital gains into Opportunity Funds that are dedicated to investing into Opportunity Zones designated by the chief executives of every U.S. state and territory.

Opportunity Zones are low income census tracts nominated by governors and certified by the U.S. Department of the Treasury into which investors can now put capital to work financing new projects and enterprises in exchange for certain federal capital gains tax advantages. The country now has over 8,700 Opportunity Zones in every state and territory.

oppzoneAbout Opportunity Funds:

Opportunity Funds are private sector investment vehicles that invest at least 90 percent of their capital in Opportunity Zones. U.S. investors currently hold trillions of dollars in unrealized capital gains  in stocks and mutual funds alone— a significant untapped resource for economic development. Opportunity Funds provide investors the chance to put that money to work rebuilding the nation’s left-behind communities. The fund model will enable a broad array of investors to pool their resources in Opportunity Zones, increasing the scale of investments going to undeserved areas.

The Opportunity Zones program offers investors the following incentives for putting their capital to work in low-income communities:

  • A temporary tax deferral for capital gains reinvested in an Opportunity Fund. The deferred gain must be recognized on the earlier of the date on which the opportunity zone investment is sold or December 31, 2026.
  • A step-up in basis for capital gains reinvested in an Opportunity Fund. The basis of the original investment is increased by 10% if the investment in the qualified opportunity zone fund is held by the taxpayer for at least 5 years, and by an additional 5% if held for at least 7 years, excluding up to 15% of the original gain from taxation.
  • A permanent exclusion from taxable income of capital gains from the sale or exchange of an investment in a qualified opportunity zone fund, if the investment is held for at least 10 years. (Note: this exclusion applies to the gains accrued from an investment in an Opportunity Fund, not the original gains).

It's short notice I know... but that' no excuse for not making an effort to find out more about this amazing economic development and financial incentive program for investors, entrepreneurs, and communities alike.

So, that's a quick summary, will dive into more of the details tomorrow night. So tell and bring a friend to this months CSE Group meetup for an exploratory dive into the "Opportunity Zone

Regards,
Mike Schmidt
Chair CSE Group
 
CSELogoSm

 

CSE Group Members:

Sorry for the late posting of the meetup and agenda for this month's meeting... It seems that sometimes there is just not enough hours in the day to get all your "punch list items" completed.

It's been a busy month and there have been a number of very interesting developments over the course of the last year in the area of "Opportunity Zones and Opportunity Funds"... If only we had a heads up on this 6 months ago ! You will have the same reaction when you find out what it's all about...

However, if you're not aware of or heard about the most innovative capital funding opportunity to come by in decades... then you might just want to plan on spending a couple of hours with us tomorrow night, (Thursday Nov 29, 2018) at 6PM at Library 21 C where we will provide a briefing about this new tax incentive and community investment platform that just might be the right kind of investment at the right time for many communities across the country

About Opportunity Zones: (From Various Internet Sources)

Opportunity Zones are a new community development program established by Congress in the Tax Cuts and Jobs Act of 2017 to encourage long-term investments in low-income urban and rural communities nationwide. The Opportunity Zones program provides a tax incentive for investors to re-invest their unrealized capital gains into Opportunity Funds that are dedicated to investing into Opportunity Zones designated by the chief executives of every U.S. state and territory.

Opportunity Zones are low income census tracts nominated by governors and certified by the U.S. Department of the Treasury into which investors can now put capital to work financing new projects and enterprises in exchange for certain federal capital gains tax advantages. The country now has over 8,700 Opportunity Zones in every state and territory.

About Opportunity Funds:

Opportunity Funds are private sector investment vehicles that invest at least 90 percent of their capital in Opportunity Zones. U.S. investors currently hold trillions of dollars in unrealized capital gains  in stocks and mutual funds alone— a significant untapped resource for economic development. Opportunity Funds provide investors the chance to put that money to work rebuilding the nation’s left-behind communities. The fund model will enable a broad array of investors to pool their resources in Opportunity Zones, increasing the scale of investments going to undeserved areas.

The Opportunity Zones program offers investors the following incentives for putting their capital to work in low-income communities:

A temporary tax deferral for capital gains reinvested in an Opportunity Fund. The deferred gain must be recognized on the earlier of the date on which the opportunity zone investment is sold or December 31, 2026.

A step-up in basis for capital gains reinvested in an Opportunity Fund. The basis of the original investment is increased by 10% if the investment in the qualified opportunity zone fund is held by the taxpayer for at least 5 years, and by an additional 5% if held for at least 7 years, excluding up to 15% of the original gain from taxation.

A permanent exclusion from taxable income of capital gains from the sale or exchange of an investment in a qualified opportunity zone fund, if the investment is held for at least 10 years. (Note: this exclusion applies to the gains accrued from an investment in an Opportunity Fund, not the original gains).

It's short notice I know... but that' no excuse for not making an effort to find out more about this amazing economic development and financial incentive program for investors, entrepreneurs, and communities alike.

So, that's a quick summary, will dive into more of the details tomorrow night. So tell and bring a friend to this months CSE Group meetup for an exploratory dive into the "Opportunity Zone

Regards,
Mike Schmidt
Chair CSE Group
Last modified on Thursday, 29 November 2018 00:04

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