Invest By December 31st In OZ Funds For Big Tax Benefits
Stock market gains for the past six weeks have been stellar, led by the same Magnificent Seven companies that saw a rally in early 2023 in the wake of generative AI. The Nasdaq has gained over 40% year to date as of December 20 in what has been a historic year for equities. Moreover, equities have also seen an extra boost from the most recent Federal Open Market Committee Meeting, dubbed the “Powell Pivot,” where the policy statement implied the possibility of three quarter-point rate cuts in 2024.
To say the Santa Claus rally came early is an understatement, as the yield on the benchmark 10-year Treasury plunged a full point to 3.92% from around 5.00% over a six-week period, unleashing a powerful equities rally fueled by net buying, short-covering and money rotating out of money markets in a fear of missing out on equity gains. The old Wall Street maxim of “bulls make money, bears make money but pigs get slaughtered” has been noted within the financial media of late, begging the question: how much good news has already been priced into stocks in such a short amount of time? Below are the year to date gains as of December 20 for popular indices:
- Nasdaq Composite: +43.87%
- S&P 500: +24.32%
- Dow Jones Industrial Average: +13.33%
- S&P Midcap 400: +15.0%
- Russell 2000: +15.45%
No one can really know how the market will trade heading into January 2024, but it stands to reason that capturing such phenomenal capital gains following the recent rally of stocks makes a strong case for booking profits and sheltering those capital gains by reinvesting in a Qualified Opportunity Fund (“QOF”)—in our opinion, preferably Belpointe OZ (NYSE American: “OZ”) the only publicly listed QOF available to investors, and which is currently trading at a steep discount to Net Asset Value (“NAV”).
Like many REITs that were sold down significantly throughout the Fed’s tightening cycle, the rising conviction that the Fed is pivoting towards lowering rates going forward has provided a fresh bid to the sector. Belpointe OZ’s NAV as of September 30, 2023 was $370.49 million, or $103.50 per Class A unit, representing, in our view, a compelling entry point for investors seeking to not only shelter capital gains for the prior 180-day period, but also seizing on steeply discounted assets per where OZ units current trade at.
Belpointe OZ has over 2,500 units in its development pipeline throughout four cities, representing an approximate total project cost of over $1.3 billion, two of which are set to open their doors for new tenants as early as spring 2024.
Unlike many private QOFs, investing in Belpointe 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 tax 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 investor servicing fees;
- No disposition fees;
- 0.75% annual management fee; and
- 5% carried interest.
Belpointe OZ has projects in Sarasota and St. Petersburg, Florida, which are located in the downtown districts within each city, close to the waterfront and key points of interest for work, dining, shopping, entertainment, and leisure activities.
We are available through this holiday season to accommodate advisors and investors that desire assistance to facilitate transactions to meet the deadline for sheltering 2023 capital gains realized in the past 180 days.
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.
©2023 Belpointe PREP, LLC. All rights reserved.
