Shelter 2023 Capital Gains By Buying An OZ Fund in 2024
Just because we have turned the page to 2024 doesn’t mean investors still can’t take full advantage of sheltering realized capital gains in 2023. For those seeking to start the new year off with a smart tax plan and wanting to offset capital gains realized in the past 180 days, now is the time to consider purchasing interests in a Qualified Opportunity Fund (QOF) that offsets capital gains going back to early July 2023, dollar for dollar. If you are an investor entering tax season looking to defer 2023 capital gains and see 2024 as the year where capital gains taxes could be an issue, then getting a jump on a tax shelter through an investment in a QOF makes sense.
The stock market has richly rewarded holders of the Magnificent Seven stocks, where portfolios were able to accumulate concentrated positions in the mega-cap AI names. Pruning and reallocating weightings are typical practices of RIAs and investors to rebalance portfolios. It may be time to consider rebalancing into Belpointe PREP, LLC (“Belpointe OZ”) (NYSE American: “OZ”), a multi-family commercial real estate fund that is set to bring its first two properties online in 2024. REITs and other real estate assets have been getting a fresh bid since the Fed began pivoting on monetary policy in the fourth quarter.
Belpointe OZ (NYSE American: “OZ”) is the only publicly listed QOF available to investors trading at a steep discount to Net Asset Value (“NAV”).
Our first property, which we will begin leasing in spring 2024, is located at 1991 Main Street, Sarasota, Florida.
Buying into Belpointe OZ at the current price could prove to be very timely given the pending legislation that the House Ways & Means Committee is looking to forward that would enhance Opportunity Zones and extend the program’s tax incentive deferral date by two years, from 2026 to 2028. The legislation, called the Opportunity Zones Transparency, Extension, and Improvement Act (H.R. 5761), has bipartisan support that incorporates fresh mandates that are purposed to reform and improve the current Opportunity Zones tax incentive.
Unlike many private QOFs, investing in Belpointe OZ (NYSE American: “OZ”) is as simple as buying any other publicly traded equity. If you purchase Belpointe OZ’s Class A units in the open market, there is no subscription agreement or investor certification required; you can simply purchase Class A units through any brokerage account. Belpointe OZ offers the same Opportunity Zone benefits as any private structure. To properly defer your reinvested capital gains, your accountant will need to file IRS Forms 8949 and 8997 with your tax returns. You will need Belpointe OZ’s EIN which can be found here: Belpointe OZ EIN
Further, in its effort to disrupt the U.S. real estate industry, Belpointe OZ is charging among the lowest fees in the market, including:
- No investors servicing fees;
- No disposition fees;
- 0.75% annual management fee; and
- 5% carried interest.
Belpointe OZ
255 Glenville Road
Greenwich, CT 06831
T: (203) 883-1944
E: IR@belpointeoz.com
The information in this communication is for illustrative, educational and informational purposes only and is subject to change. Nothing in this communication is or should be construed as an offer to sell or the solicitation of an offer to buy any securities. Offers may only be made by means of a prospectus.
Belpointe PREP, LLC (“Belpointe OZ”) has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Prior to making an investment decision, you should read Belpointe OZ’s prospectus and the other documents that it has filed with the SEC in their entirety, and carefully consider its investment objectives and strategy, risk factors, fees and expenses and any tax consequences that may results from an investment in the offering. Copies of these documents can be obtained free of charge from www.sec.gov or investors.belpointeoz.com or from any broker-dealer participating in the offering.
The information in this communication should not be relied upon as investment or tax advice. You should consult with your own investment and tax advisers concerning the federal, state and local income tax consequences of purchasing, owning or disposing of securities in the offering, and of Belpointe OZ’s election to qualify as a partnership and qualified opportunity fund for federal income tax purposes. There is no guarantee that Belpointe OZ will continue to qualify as a partnership or qualified opportunity fund.
Past performance is not an indicator or a guarantee of future performance. An investment in the offering to which this communication relates involves a high degree of risk, including a complete loss of your investment, and may not be suitable for all investors. The price of Belpointe OZ’s securities will fluctuate in market value and may trade above or below net asset value. Brokerage commissions and expenses will reduce returns.
The offering to which this communication relates is being made on a best-efforts basis on behalf of Belpointe OZ through Emerson Equity, LLC, Member FINRA, SIPC, as managing broker-dealer.
©2024 Belpointe PREP, LLC. All rights reserved.
