Check the background of this financial professional on FINRA's BrokerCheck. CRS Form (Client Relationship Summary)
Opportunity Zone Basics in Oregon
Oregon Residents can potentially make a positive impact in Opportunity Zones across the country.
What is an Opportunity Zone?
"Opportunity Zones are an economic development tool that allows people to invest in distressed areas in the United States. Their purpose is to spur economic growth and job creation in low-income communities while providing tax benefits to investors. Opportunity Zones were created under the Tax Cuts and Jobs Act of 2017 (Public Law No. 115-97)" -irs.gov
Why do Opportunity Zones Matter to Investors?
Investors can realize tax benefits by investing capital gains into Qualified Opportunity Funds (QOFs), which in turn invest in businesses or real estate projects located in Opportunity Zones. The tax incentives include deferral of capital gains taxes, in some cases a reduction in the amount of taxable capital gains, and potential elimination of capital gains taxes on the appreciation of the investment if certain conditions are met.
Most QOZs require investors to be accredited investors. Find out if you are accredited here.
Opportunity Zones in Oregon
As for 2023 there are 86 Opportunity Zones in Oregon including 5 in the Springfield and Eugene community. This means that if you make qualified investments in parts of Bethel, Downtown Eugene, Downtown Springfield, Glenwood, and some U of O/EWEB property you can potentially take advantage of the tax benefits.
See a full list of all Opportunity Zones in Oregon on the states website here.
How T. Mann Financial can help you invest in Opportunity Zones
T. Mann Financial in Springfield Oregon can help you select and invest in Opportunity Zones today!
T. Mann Financial's 3-Step QOZ Process
1. Determine Suitability
Once a capital gain event has been identified we have a conversation with our clients to determine if a qualified opportunity zone investment is suitable for their specific situation. We discuss their risk tolerance, time horizon, goals, tax situation, access to cash in the case of an emergency, etc.
2. Select one or more QOZs
T. Mann Financial works with our compliance team to identify multiple options and then work with our clients to select a combination that would best meet their individual needs.
3. Integrate QOZs into the larger Portfolio
Risks Associated with Opportunity Zones
While QOZs can be a great opportunity for investors, any one or more QOZ should never compose more than a small fraction of your total portfolio as these investments are considered high risk by the SEC.
Example QOZ Investment
Imagine a wealthy investor named Duck from Eugene Oregon just sold an apartment complex that he has owned for many years. Duck shared his concerns with T. Mann Financial about the fact he has been depreciating that asset and will incur a large capital gain as a result of the sale. He doesn't have the cash to pay for the capital gains tax now but will in a few years.
After a conversation with T. Mann Financial it is determined that Duck is a suitable candidate for a QOZ investment.
T. Mann Financial then presents multiple qualified opportunity Zone funds and together they select and invest in two of them.
In this scenario, Duck would have been able to defer those capital gains until 2026.