Smith QOF Management can assist you locating, purchasing and managing Qualifed Opportunity Fund (QOF) in southern Arizona.
The QOF program is a part of the 2017 job and tax cut act to create investment opportunities in revitilized areas and underdeveloped rural areas which will bring growth, jobs and opportunities for the people who live in the community.
WHAT IS A QOF
QOFs are categorized as impact investing, a type of activity in which investors seek to confer positive social benefits while also benefitting financially. Typically, QOFs are formed as partnerships or corporations; they can also be structured as real estate investment trusts (REITs). QOFs can own a broad range of property types including residential units, commercial property, and certain types of businesses, but the property must be located in an identified Qualified Opportunity Zone.
BENEFITS OF QOF
IRS rules provide generous tax incentives for investing in QOFs, to provide a much-needed economic boost for identified communities. If a client has a large capital gain from the sale of appreciated assets, they can reinvest that gain in a QOF within 180 days and defer the associated capital gains taxes from the sale until December 31, 2026 (when the law sunsets), or until the Opportunity Zone investment is sold (whichever comes first). They can also reduce their capital gains tax by up to 15% because of an increase in the basis of the appreciated assets used to buy the fund interest. The basis increases by 10% if the client holds their interest in the QOF for a minimum of five years. Hold it for seven or more years, and the basis rises to 15%. As a bonus, they can eliminate the capital gains due on the appreciation in the QOF if they hold the fund for 10 years or longer.
Smith QOF Mgt. will assist you with locating, purchasing and manage your real estate QOF. Smith QOF Mgt. has a full team of attorneys, cpas, contractors to assist with your needs. Smith QOF mgt. Owner Stephanie Smith has over 23 years in California and Arizona real estate. We have successfully assisted with many QOF purchases in Arizona. QOF's creation and management range from a small multiplex, storage facility, Eco-Friendly 60 home development, car wash, and solar farm.
Email QOFMgt@Gmail.com for more information.
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