Disclosure: I am neither an investment advisor or a tax professional, nor am I authorized to give advice in either. Please consult with your investment advisor, tax professional, or attorney to determine if your capital gains are eligible for investment in the QOZ program.

Austin, Texas – As we enter the new year, I am thrilled to share with you an opportunity that your investment advisor or tax professional may not be aware of – Rolling your 2023 capital gains into an IRS Qualified Opportunity Zone (QOZ) Fund.

2023 was a banner year for many asset classes, including historic gains in the stock market. Now you have a choice to make – Pay taxes on your 2023 capital gains now, or invest those eligible gains into a Qualified Opportunity Fund (QOF) and enjoy:

1. Deferral of capital gains taxes on eligible gains until the earlier of the sale of the QOF investment or 12/31/2026,* and
2. Potential tax-free appreciation on your gains if invested in the QOF for a minimum of 10 years.*

Really, it’s a no-brainer. The Next Frontier QOF remains entirely in cash, free from the burden of any legacy assets. We have underwritten over 100 parcels of land and commercial properties within the “Texas Triangle” that we remain interested in purchasing at the right price. It is our belief that land and property values are still largely overinflated, but are coming down slowly and will continue to do so over the coming months.

As a reminder, our last QOZ Fund, REBEL Realty Investment QOZ Fund I, enjoyed a 56.5% annualized IRR net of fees. I believe the opportunity that lies before us is even greater than that in which we previously capitalized on.  

With this in mind, I leave you again with the question: To pay capital gains taxes, or not to pay capital gains taxes?

I believe the answer is clear. We recommend you advise with your investment or tax professional to determine if your gains are eligible for investment in a QOF.

We wish you a safe, healthy, and prosperous 2024, and we thank you for trusting us as your successful guide through a turbulent and unpredictable real estate market. We remain as committed as ever to finding the best deals in the best markets, to provide you with the outsized returns and the superior level of service you have grown to expect from us. We are excited for the year ahead, and we cannot wait to welcome you into the Next Frontier of (Tax-Preferred) Real Estate Investing.

* Opportunity Zones Frequently Asked Questions | Internal Revenue Service (irs.gov)