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Qualified Opportunity Zones - A great way to defer & eliminate Capital Gains Taxes

Qualified Opportunity Zones - A great way to defer & eliminate Capital Gains Taxes

February 06, 2021

Opportunity Zones Connect Private Capital with Economic Growth

Opportunity zones were created as part of the Tax Cuts and Job Acts of 2017 to stimulate long-term private
investments in low-income urban and rural communities nationwide. By providing tax benefits to investors,
opportunity zone fund investments are intended to promote economic growth in distressed areas.

Tax Advantages that Grow with Time

With three levels of tax advantages, qualified opportunity zone fund (QOF) investments can lead to permanent
elimination of capital gains taxes.

The level of tax deferral grows over time as long as the investment is maintained in the QOF.

Initial Tax Deferral

Defer capital gains
taxes from initial sale of
stocks, bonds, real estate,
businesses and other assets,
by investing in a QOF.

Partial Elimination

Reduce capital gains taxes by
10%, if the investment is held
for 5 years.

Complete Elimination

Exclude (forgive) capital gain
taxes from QOF appreciation,
if held for at least 10 years.

Year 1: Invest capital gains in a
QOF within 180 days

Year 5: Tax on original
deferred capital
gains is reduced
by 10%

Year 10: All capital gains
taxes on potential
profits from QOF
investment are
2020 2025 2026 2027 2029

April 15, 2027: Pay taxes on original deferred
capital gains (less 10%
reduction, if held for 5 years)

December 31, 2026: Recognize capital gains
taxes on original capital
gain invested in QOF
QOF = Qualified Opportunity Zone Fund

How to Invest: Invest capital gains from a sale into a qualified opportunity zone fund within 180 DAYS.

On your tax return, indicate that capital gains from your sale were reinvested in a qualified
opportunity fund. Capital gains from the sale of almost any type of appreciated asset can be reinvested in a qualified opportunity
fund to achieve partial or complete elimination of tax.

Capital Gains May Have Resulted from the Sale of:
Business sale Art
Other assets
Mutual funds
Real estate
Designed to Promote Economic Growth

The governor of each state and five U.S. territories designated up to 25% of eligible census tracts as an
opportunity zone, resulting in nearly 9,000 active opportunity zones across the country.

Qualified Opportunity Funds May Invest in:
• Real property, including land, real estate developments, renovations or repositioning
• Businesses
• Equipment

*90% of assets in a qualified opportunity fund must be invested in qualified opportunity zone property.

Securities offered through LightPath Capital, member FINRA/SIPC.

Consider the Risks:
Always remember that each property is unique and past performance is no guarantee of future results. Real estate-related investments involve substantial risks.
There are tax risks associated with an investment in the Investor Units, including the possibility that government regulations regarding Opportunity Zone investments
may change.
Information about properties must be read in conjunction with the confidential private placement memorandum for each Opportunity Zone Fund, which contains
additional important risk disclosures and more specific information about each Fund. This is neither an offer to sell nor a solicitation of an offer to buy an Opportunity
Zone Fund and is for educational purposes only. Prospective investors should consult their own tax advisors to evaluate the tax consequences of an Opportunity
Zone Fund interest.

We do not give tax or legal advice. Consult a qualified Tax or legal expert or both for advice. Accredited investors only. Contact Sid Jain at 408-836-3858 for PPM (prospectus) or email to