KCDC OPPORTUNITY ZONE FUND
Now Open To Investors
12% of US census tracts are Opportunity Zones (8,762 tracts). which were officially designated by the US Department of the Treasury. The designated zones have lower incomes and higher poverty rates.
Opportunity zones are currently being designated by the governors of each state. Each state may designate 25% of the eligible census tracts in their state. As of right now, all 50 states and Puerto Rico have submitted and have been approved for designated Opportunity Zones.
No. Opportunity zones must meet certain criteria to qualify. Census tracts with over 20% poverty and median family income no greater than 80% of the area medium will qualify. There are also contiguous zones, which are census tracts that are adjacent to a designated opportunity zone, and also do not exceed 125% of the median family income of that same opportunity zone.
Individuals who are realizing a capital gain across all asset classes can invest those monies on a tax deferred basis, as long their gain is invested in a qualified opportunity fund within 180 days of the sale or exchange. The process is very easy. Agree to subscription agreement, transfer funds, receive stock certificate and tax statement. The whole process is usually completed within 48 to 72 hours. In certain situations where an individual is facing the expiration of the 180 day window we can expedite the process to same day. Ordinary income investors may also participate with different benefits; however capital designated as ordinary will not receive the 10-year tax free return nor the 5-year deferment.
Yes. This is a mixed use fund that can accommodate a range of investor profiles. Investment may come from both ordinary income as well as capital gains. However, if the investor uses capital gains they must be invested in qualified opportunity funds that have 90% of their assets invested in qualified opportunity zones. Non capital gain money can be invested into opportunity funds however there would not be a step up in tax basis benefits for earnings of non capital gain money.
All capital gains on the sale or or exchange of any property to an unrelated party invested within 180 days are eligible for the tax benefits.
The minimum investment into the fund is $150,000.
The Fund is qualified opportunity stock meaning you are investing in the entire interest of the fund and its holdings including any and all portfolio companies within and outside of Opportunity Zones.
There is a subscription agreement that is signed by the investor and a wire transfer agreement. This is then followed by an execution of the Operating Agreement with a wire transfer into the Qualified Opportunity Fund account.
If using capital gains, investors have 180 days to invest realized gains.
Investments made by the Fund are made within Opportunity Zones. While all the care is taken to ensure sufficient due diligence is done prior to investment, these investments are subject to risks. Startups can have a high success rate but these also come with intrinsic risks associated with markets & other factors.