Opportunity zones
Opportunity Zone Program Overview:
Qualified Opportunity Zones were created by the 2017 Tax Cuts and Jobs Act. These zones are designed to spur economic development and job creation in distressed communities by providing tax benefits to investors who invest recently incurred capital gains into these communities. Taxpayers can defer tax on eligible capital gains by making an investment in a QOF.
Investors that incur gains that they wish to defer can invest in a QOF and are eligible for:
- A deferral on taxes due from contributed capital gains through the end of 12/31/2026,
- A discount of 15% on the original capital invested, if held for 7 years or 10% if held for 5 years,
- A complete tax abatement on any appreciation of the initial investment, if held for at least 10 years.
Wedgewood’s Unique Positioning:
- Wedgewood’s standard investment horizon aligns with the of the Opportunity Zone program. We seek to create value and generate for yield for our investors for terms of 10 years and beyond.
- Since the Opportunity Zone program was unveiled Wedgewood has raised +$40mm in equity from investors that sought to defer capital gains. Future projects that Wedgewood currently control will require at least another $40mm in equity.
- Wedgewood has an intimate understanding of the Opportunity Zones in Nashville’s urban core as well the entitlement process for Metro Nashville. Because of this we are uniquely positioned to execute on opportunities when they arise.
Wedgewood’s QOF Transactions:
- Additional opportunities are being pursued in well-located neighborhoods within Nashville’s urban core Opportunity Zones.