What You Need to Know About OZ Investments

OZ investments are intended to “spur economic growth and job creation in low-income communities”. At Nest, we’ve created quality, affordable housing in OZ-designated neighborhoods in Columbus, Ohio, and Lexington, Kentucky. Success stories in places like South Los Angeles, Baltimore and Erie, Pa. have emerged across the country. If you’ve realized capital gains in 2023, now is the time to invest in a qualified Opportunity Zone fund if you want to reduce your tax burden as much as possible.

Opportunity Zone Timeline Extension

On October 2nd of this year, the Opportunity Zone Improvement, Transparency, and Extension Act, was introduced in the House of Representatives. If passed, the bill is expected to extend the Opportunity Zone program by two years, from December 31, 2026 to December 31, 2028.

Those who have a passing familiarity with the Opportunity Zones program know that investing capital gains in a QOF allows the investor to defer them. This will continue to be true moving forward. Provisions to this program can be found here.

Create Pathways for Smaller-Dollar Investments

A qualified opportunity fund (like Nest) that bundles investor dollars to fund projects in specific OZs also could be organized as a “fund of funds” to invest in other such funds. The goal is to make financing more readily available for OZs involving smaller communities or smaller projects.

Start Preparing Now to Keep Your Taxes Down

If you have capital gains and want to reduce your tax burden and your 2023 tax bill, your best bet is to get the process started now. Luckily, we at Nest Opportunity Fund are ready for the qualified Opportunity Zone deadline, and can work with investors to get them set up and ready to save with plenty of time left in the year.

You can use our calculator tool to find out just how much you could save by investing in our qualified Opportunity Zone fund, or download our fund deck to learn more about the fund. Then, reach out to our team at Nest to get the process started.