Ozone Capital Markets
A Qualified Opportunity Zone Source
Who We Are
Ozone Capital Markets LLC is an independent consulting firm helping individuals, family offices, and other institutional investors identify and connect with Qualified Opportunity Zone (QOZ) projects. As the number and diversification of QOZ funds increase, Ozone Capital Markets looks to serve as a resource to help educate and navigate the space. Since we are not a financial firm, we simply provide unbiased project listings and let interested investors connect with affiliated registered professionals for accredited qualification and follow up material.
Opportunity Zone Basics
Defer Capital Gain
Initial Benefit
Investing into a Qualified Opportunity Zone enables you to defer your gain until 2026.
Example
An investors sells a stock with a capital gain associated with it. If the gain associated with the stock is invested in a QOZ within 180 days of the transaction date, the taxes associated with the gain are deferred
Source: irs.gov
Reduce Capital Gain
Secondary Benefit
After a 5 year holding period, your invested capital gain tax is reduced by 10%
Example
A QOZ investment was made using eligible capital gains. Upon holding the QOZ investment for 5 years, only 90% of the original gain is subject to taxation.
Source: irs.gov
Eliminate Capital Gain
Long Term Benefit
After a 10 year holding period any gain from the QOZ investment becomes tax free.
Example
If the QOZ investment was held for ten years, an investor can elect to increase the basis of the QOZ investment to its fair market value on the date of the sale or exchange thus making any QOZ gain tax free.
Source: irs.gov
Opportunity Zone Key Dates Approaching - December 31, 2021
The final date for investors to place capital into a Qualified Opportunity Fund and be eligible for the 10-percent basis step-up, which grants the taxpayer a 10 percent reduction in the amount of capital gains recognition on the original capital gains. Ozone Capital Markets expects a flurry of investment into Qualified Opportunity Funds as this date approaches.
The date of the second twice-annual asset test for Qualified Opportunity Zone Businesses and Qualified Opportunity Funds. We are expecting a flurry of Opportunity Zone deal transactions as this date approaches.
an economy hampered by restrictive tax rates will never produce enough jobs or enough profits."
John F. Kennedy 1962
