If You Have Capital Gains, This Investment Might Help You Lower And Defer Your Tax Bill

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

What’s better than realizing a huge gain on your investments? Being able to keep more of those gains by deferring or reducing the capital gains tax you’ll have to pay, and CrowdStreet's new opportunity zone fund may be able to help you do just that.

Opportunity Zone Fund Tax Benefits: Opportunity Zones are an economic development tool created in the Tax Cuts and Jobs Act of 2017. This tool was created to spur development in low-income and distressed areas throughout the U.S. by offering attractive tax advantages to investors.

Investors are able to defer taxes on capital gains that were earned through selling stocks, real estate, or virtually any asset that would trigger a capital gains tax as long as certain requirements are met.

The law also allows for a 10% step up in basis on the original capital gain if you hold the investment for at least five years, and you can avoid paying taxes on any new gains if you leave the funds invested for at least 10 years.

Of course, there are several rules and stipulations that must be followed so it’s important to consult with a tax professional before jumping into an opportunity zone fund investment.

CrowdStreet Opportunity Zone Fund II: CrowdStreet has just opened the investing window on its newest opportunity zone fund. The fund will seek to invest across property types, including multifamily, industrial, office, retail, and others that are located in opportunity zones in the fund’s target markets.

The fund will be managed by CrowdStreet Advisors, which provides a unique benefit compared to similar opportunity zone funds. One of the most crucial pieces to managing a successful real estate fund is access to deals, and this is even more important when it comes to an opportunity zone fund that has to invest in specific markets.

The fund has exclusive first access to offerings brought to CrowdStreet. This means the fund will have access to several off-market deals before they’re offered to other investors on the marketplace.

CrowdStreet’s first opportunity zone fund was launched at the end of 2019. The fund received $15.4 million in investments and acquired six properties.

You can find more details on Opportunity Zone Fund II, as well as other current offerings, on CrowdStreet’s platform here.

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.