Opportunity Zones

Tax Breaks That Empower Change

Qualified Opportunity Zones (QOZ) are an economic development tool designed to generate economic development and job creation in distressed communities. The designated zones have lower incomes, higher poverty rates, and higher unemployment rates than eligible non-designated tracts. We look for opportunities for investors to defer the taxes on their capital gains by leveraging the tax incentives QOZ provides to stimulate investment in low-income geographies.

We are also disrupting the gentrification trend. Unlike other investment funds that leverage Qualified Opportunity Zones in ways that harm the communities they invest in, we are leveraging smart investment tools to build affordable housing. Our investors make money, and our project makes change.

3 Key Benefits

1. Defer Benefit on Capital Gains

Investors can sell existing assets and invest the accumulated capital gains into a qualified Opportunity Zone fund like ADU OZ Fund. The tax on this sale is deferred through the end of 2026.

2. Portfolio Growth

After completing Opportunity Zone developments, funds received from a refinance are reinvested into new projects.

3. Permanent Tax Exclusion

For investments held for at least ten years, investors pay no taxes on capital gains produced through their investment in Opportunity Funds


Adjusted Reduced Tax Basis

If the Opportunity Fund investment is held for five years, the investor will be deemed to realize the deferred capital gains from the initial investment date. 

If the Opportunity Fund investment is leveraged through financing, the value-add approach will create a cash-out refinance option for reinvestment. This reinvestment remains part of the investor’s tax-free growth from the original capital gains investment.

Finally, if the investor holds the Opportunity Fund investment for at least ten years, the basis is deemed to be the fair market value of the Opportunity Fund investment, and no capital gains tax will apply to the appreciation of the total Opportunity Fund investment.