• Wally Sullivan

OZ Tax Advantaged Inflation Hedge

Updated: Oct 25

With a backdrop of unprecedented money printing, 30-year high inflation, and the threat of rising taxes, much needed investor relief may come from an unlikely source.

The growing OZ industry, which has been dominated by multi-family building projects for the last few years, is finally giving way to a new generation of business oriented projects. Some of these new projects can also provide a hedge against the effects of excessive money printing. Here are a few examples:

Whether you think Gold, Bitcoin, or Farming is the best inflationary hedge and store of long term value, why not simultaneously take advantage of the most significant tax haven in U.S. history? The OZ capital gains tax shelter allows investors to defer, reduce, and ultimately eliminate taxes for qualified projects located within designated areas.

This new generation of projects certainly keeps to the spirit of the OZ program since it provides stimulus and jobs where they are needed most. In addition, given the flexibility of the OZ program, these new financially savvy project managers have quickly learned to benefit investors by leveraging tools like “bonus depreciation.”

Please be aware that there is a 12/31/21 deadline to maximize the OZ tax advantages. If you have recently realized a capital gain or would like to, contact Ozone Capital Markets to help navigate the OZ space.

126 views0 comments

Recent Posts

See All

Inflation and Basis Step Up Deadline

Inflation has reared its ugly head and there are very few signs that it will abate in the near future. The latest CPI reading showed an increase of 6.2% for the year ending October 2021 which is the h