Nest Opportunity Fund Launches in the Midwest

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Taxpayers can receive as much as a 15 percent reduction in capital gain taxes while investing in the renewal of select communities

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On the surface, the concept of an OZ investment seems like a no-brainer for an investor looking for excellent tax benefits and returns with minimal involvement. But if you dig deeper, you discover that communities will benefit greatly from these investments.

Beacon Hill Investment Advisory is pleased to announce the establishment of The Nest Opportunity Fund for investors in Central Ohio. The Opportunity Zone (OZ) investment program is designed to deliver a significant return on investment while providing a valuable service for low income residential areas. The OZ targets single-family and smaller multi-family homes for renewal and works closely with the communities to maintain the culture and character of the individual neighborhoods.

“The real estate we focus on is located in Midwest cities with favorable demographics that include stable and diverse employment, potential for population growth, and other criteria including advantageous pricing and rent,” said Clint Edgington, Partner, Beacon Hill Investment Advisory.” We partner with thoroughly vetted, respected contractors who specialize in managing multiple property upgrade projects at once. These homes are built to last, complete with solid wood cabinets, upgraded appliances, tankless water heaters and a catalog of other amenities to help improve the lives of residents.”

The OZ Investment program works like this. Normally, a profit resulting from the sale of an asset is taxed at a maximum capital gains rate of 20 percent. However, in 2017, Congress passed legislation that gives taxpayers the option of deferring payment of capital gain taxes until the end of 2026 by putting that profit into an OZ Fund that reinvests the proceeds. If invested for five years, original capital gains tax liability is reduced by 10 percent, with an additional five percent if proceeds are invested for seven years. The amount of tax deferred becomes due and payable in 2026. If the OZ Fund investment is held for at least ten years, then the Fund’s sale of its OZ property will be treated by the IRS as 100% tax-free. All OZs are scheduled to expire at the end of 2028, but investments made prior to this expiration date will continue to accrue tax-free gains until 2047.

“On the surface, the concept of an OZ investment seems like a no-brainer for an investor looking for excellent tax benefits and returns with minimal involvement,” Edgington continued. “But if you dig deeper, you discover that communities will benefit greatly from these investments. In addition, we’ve also secured grant funding in a public/private partnership.

It’s a win-win for everyone. Investors should recognize, however, that not all OZ funds are created equal. As always, they should carefully review investment decisions with trusted advisers.”

To receive the full benefit of the OZ Fund, investors must invest by year-end 2019. To learn more about the OZ Fund opportunities offered by Beacon Hill, go to nestopportunityfund.com.

About Beacon Hill Investment Advisory
Since 2008, Beacon Hill has built a reputation of excellence by providing a high level of advisory and family office services to its clients. The firm is dedicated to not only helping clients achieve their financial goals, but also to simplifying their finances – from retirement planning, to public/private investment holdings, to business planning and tax planning. Visit http://www.beaconhilladvisory.com and http://www.nestopportunityfund.com for more information.

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Marcy Fleisher
Team Fleisher Communications
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