Established in the Tax Cuts and Jobs Act of 2017, Opportunity Zones are a new community development program to encourage long-term investments in low-income urban and rural communities nationwide. Investors receive tax benefits similar to a 1031 real estate exchange but applied to all types of capital gains. Developers and communities get access to capital that otherwise would not be available. Opportunity zones will help unleash investment in low-income communities throughout the country.
An investor who has a capital gain by selling an asset like stocks or real estate can receive tax benefits if they roll that gain into an Opportunity Fund within 180 days. There are three advantages to rolling over your gains into an Opportunity Fund:
Roll Capital Gain
Tax Free Growth
*Reference Cushman & Wakefield Spotlight Timeline interactive graphic
If you have a $1M capital gain through stock, bond, business or property sale. Instead of paying $238,000 in taxes, you invest $1M Splitting basis and gains using qualified Opportunity funds. into the Activated Capital Opportunity Zone Fund that is focused on double bottom line returns. Let’s say in 2028, the Fund returns almost $2M including the original investment considering 8% ROI. No taxes are due on the $1M gain. You'll only pay $202,300 in deferred capital gains on first initial sale. Below is the comparison calculation that shows this scenarios*The expected annual return is used only as an example and is not intended to represent expected performance of any specific investment.
You can invest through a Qualified Opportunity Fund which provides a tax incentive for investors to re-invest unrealized capital gains, from any source, into a fund that is dedicated to making equity investments in businesses, real estate, and other business assets located in Opportunity Zones.
Activated capital opportunity fund was created by a team of experienced real estate professionals, investors and developers to professionally invest unrealized gains of investors to generate double bottom line - both socially and financially. The fund will distribute capital to accelerate innovation in a way that positively affects a city's social impact. We are experts in managing our investments, executing real estate projects, and providing transparency through the process.
The driving force for the fund is to deliver top-tier returns (First Bottom Line), while working with communities to enable social, environmental and economic improvement (Second Bottom Line).
We look for projects that are shovel ready and deals where capital can be deployed quickly and effortlessly
Activated capital main focus area are single family housing, multi-family housing, commercial real estate like hospitality , co-working spaces, storage etc. The focus is to minimize the risk of investment while maximizing the returns
Activated capital diversified its portfolio by investing in different geographical areas of opportunity zones to minimize risk
Substantial alignment from operators, tenants, managers and investors safeguard our capital preservation approach - aligning with our three C’s: Character, Commitment and Capacity.
The Activated Capital team has substantial experience in real estate acquisitions, ownership and structured investments in emerging communities and have verified experienced local team members to work on projects
We work very closely with clients who want custom solutions for the investment in terms of acquiring a particular asset
Activated Capital has committed to measuring the impact of the social and economic metrics and has created its own Opportunity Zone Scoring rating system
Please contact us at firstname.lastname@example.org with your details, amount you are interested in investing and any other information that would be helpful to understand your interest
One of our investment team members will get back to you shortly and discuss various options
Once confirmed the interest, we’ll send subscription documents to sign and get the invest check
We’ll activate your investment in the Fund on Day 1, at this time our investors will receive a fully completed IRS Form 8949 in order to file to the appropriate tax authorities.
The Fund will deploy capital in our shovel-ready fully vetted projects and projects distributing cash flow via a preferred return within 180 days.