180-Day Lookback Period Shrinking With Each Passing Day

While the 2022 calendar year may have come and gone, the window for sheltering capital gains realized in 2022 hasn’t closed quite yet. It is, however, narrowing with each passing day. By the time this column is published, on January 5th, there will only be 175 days remaining for most investors that realized capital gains in the final months of 2022 to qualify for 100% deferral of the federal (and in most cases state) taxes that would otherwise be due on those capital gains by reinvesting them into a Qualified Opportunity Zone Fund (a “QOF”). This includes both short- and long-term capital gains from the sale stocks, bonds, mutual funds, ETFs, real estate, collectibles, equipment, trademarks, patents, websites, precious metals, crypto currencies, NFTs, a business, an interest in a partnership, planes, boats, livestock and all other manner of tangible and intangible assets.

It’s not just those investors who realized capital gains in the final months of 2022 that are ideally positioned to reinvest those capital gains into a QOF either, if you’re looking to realize capital gains in 2023, you too can reinvest those capital gains into a QOF, like Belpointe PREP, LLC (NYSE: American “OZ”). In my view, it’s never too early to start thinking about tax planning strategies for 2023, and now is as good a time as any to get fully informed so that you can make an intelligent decision about Qualified Opportunity Zone investing.

And for those investors considering, or who may even be in the throes of, a 1031 like-kind exchange, and who may be struggling to find a replacement property that qualifies as “like kind,” or struggling to arrange for attractive financing, or who may have had a transaction fall apart, or even who may have mistakenly bypassed using a qualified intermediary and taken possession of the sale proceeds themselves, opting into a QOF structure instead—like Belpointe PREP, LLC (NYSE: American “OZ”)—might just make for a smart and timely alternative. Some sellers of real estate may simply be forgoing the 1031 exchange route altogether for various reasons, and, here, too, it may make sense to shelter capital gains from taxes until the Opportunity Zone program expires.

We spell out how this alternative can work for you in our white paper. Follow this link to request the Publicly Traded Opportunity Zone Investing White Paper.

Want more information? There’s a wealth of detail on our website at investors.belpointeoz.com where investors and advisors alike can learn about Belpointe OZ and some of its key features.

Have questions as the window for sheltering capital gains realized in 2022 continues to close? For immediate assistance you can call today and I’ll take the time to answer as many of your questions about Belpointe OZ and how reinvesting capital gains into a QOF can be utilized to offset capital gains tax obligations as I can. My direct number is (203) 883-1944.

Heading into 2023, Belpointe OZ’s portfolio of properties and property interests consists of 15 holdings that are at varying stages of full-on buildout, development, redevelopment, demolition, architectural conception and permitting. Our management team is focused on high job and population growth markets in the South, Southeast and Mid-Atlantic markets. Belpointe OZ currently has five properties in Sarasota, Florida, three in St. Petersburg, Florida, five in Nashville, Tennessee, and two in Connecticut.

The plan forward into the new year is to continue to build out full-featured Class-A apartment projects while also acquiring seasoned and stabilized assets that can generate income and long-term appreciation of the underlying properties. Out of the many Opportunity Zones that we’ve looked at (and there are more than 8,700+ of them), we believe that there are less than 100 that are worth investing in.

Investing in Belpointe OZ (NYSE American: “OZ”) is as simple as buying any other publicly traded equity. If you purchase Belpoint 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 gain 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

To perhaps help facilitate the decision-making process, I want to note some features that are common to all QOFs, and some that are specific to Belpointe OZ, which I have included in bold type:

• QOFs provide for pass-through income, thereby avoiding double taxation for investors;
• QOFs provide for pass-through depreciation, with no depreciation recapture if an investment is held for 10 years, up to December 31, 2047;
• QOFs require annual distributions of at least 90% of taxable income;
• QOFs provide for up to a 20% reduction on taxable distributions via Internal Revenue Code Section 199A;
• Belpointe OZ provides for asset diversification;
• Belpointe OZ provides investors with greater control over their exit timing and amount;
• Belpointe OZ offers low minimums for investor access;
• Belpointe OZ unitholders will not be asked to add additional capital for any type of improvements or problems with investment properties;
• Belpointe OZ provides investors with better reporting, transparency, and oversight;
• Belpointe OZ provides investors with the opportunity for daily liquidity;
• Belpointe OZ allows both accredited and non-accredited investors to access the investment class; and
• Belpointe OZ simplifies the investment purchase process.

Further, in its effort to disrupt the U.S. real estate industry, Belpointe OZ is charging among the lowest fees in the market:

• No investors servicing fees;
• No disposition fees;
• 75% annual management fee; and
• 5% carried interest.

Have questions about how Belpointe OZ (NYSE American: “OZ”) can provide opportunities for investment appreciation and income and help you or your clients to defer or eliminate capital gains tax obligations?

Call me, Cody Laidlaw, at (203) 883-1944. I can answer your questions and direct you to resources that will provide you with information about the nuts and bolts of QOFs and opportunity zone investing, so you can start planning today.

Cody H. Laidlaw
Editor-in-Chief
Belpointe OZ
255 Glenville Road
Greenwich, CT 06831
T: (203) 883-1944
E: IR@belpointeoz.com

Disclosure: Cody H. Laidlaw is the Chief Investor Relations Officer. Cody is also an investment advisor representative with Seaside Advisory Services, Inc. (d/b/a Seaside Financial & Insurance Services), a SEC registered investment adviser offering advisory accounts and services, and holds a long position in Belpointe PREP, LLC’s Class A units.

Important Information and Qualifications

Belpointe PREP, LLC (“Belpointe PREP”) has filed a registration statement (including a prospectus) with the U.S. Securities and Exchange Commission (SEC) for the offer and sale of up to $750,000,000 of Class A units representing limited liability interests in Belpointe PREP. You should read Belpointe PREP’s most recent prospectus and the other documents that it has filed with the SEC for more complete information about Belpointe PREP and the offering

Investing in Belpointe PREP’s Class A units involves a high degree of risk, including a complete loss of investment. Prior to making an investment decision, you should carefully consider Belpointe PREP’s investment objectives and strategy, risk factors, fees and expenses and any tax consequences that may results from an investment in Belpointe PREP’s Class A units. To view Belpointe PREP’s most recent prospectus containing this and other important information visit sec.gov or belpointeoz.com. Alternatively, you may request Belpointe PREP send you the prospectus by calling (203) 883-1944 or emailing claidlaw@belpointe.com. Read the prospectus in its entirety before making an investment decision.

This communication, including any links embedded herein, may not be distributed in any jurisdiction where it is unlawful to do so. Nothing in this communication is or should be construed as an offer to sell or solicitation of an offer to buy Belpointe PREP’s Class A units in any jurisdiction where it is unlawful to do so.

Neither Belpointe PREP nor any of its affiliates provide investment or tax advice and do not represent in any manner that the outcomes described herein will result in any particular tax consequence. Prospective investors should consult their own investment and tax advisers concerning the U.S. federal, state and local income tax consequences, as well as any tax consequences under the laws of any other taxing jurisdiction, in relation to their personal tax circumstances, which may vary for prospective investors in different tax situations.

This communication may contain estimates, projections and other forward-looking statements, typically identified by words and phrases such as “anticipate,” “estimate,” “believe,” “continue,” “could,” “intend,” “may,” “plan,” “potential,” “predict,” “seek,” “should,” “will,” “would,” “expect,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “effort,” “target” or the negative of such words and other comparable terminology. However, the absence of these words does not mean that a statement is not forward-looking. Any forward-looking statements expressing an expectation or belief as to future events is expressed in good faith and believed to be reasonable at the time such forward-looking statement is made. However, these statements are not guarantees of future events and involve risks, uncertainties and other factors beyond Belpointe PREP’s control. Therefore, we caution you against relying on any of these forward-looking statements. Actual outcomes and results may differ materially from what is expressed in any forward-looking statement. Except as required by applicable law, including federal securities laws, Belpointe PREP does not intend to update any of the forward-looking statements to conform them to actual results or revised expectations.

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