• Wally Sullivan

Tax Sheltered Inflation Hedge

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.

On Friday November 5th, the Fed's gauge of inflation (CPI) rose at its quickest pace in over thirty years. Factory shutdowns continue to occur and these shutdowns are exacerbating the already existing supply chain issues which will not abate during the holiday shopping season. Rents are rebounding after a COVID induced drop which could continue to push real estate prices higher.

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.

Fore more information, please contact:

Disclaimer: These materials are not intended to provide, and should not be relied upon for investment, accounting, legal or tax advice. Additionally, these materials are not an offer to sell or the solicitation of an offer to buy any securities or other instruments. Actual transactions described herein are for illustrative purposes only, are presented as of underwriting and are not indicative of actual performance, and were selected based on objective, non-performance factors such as asset-type, geography, or transaction date, among others.

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