Facts About Opportunity Zones
The Tax Cuts and Jobs Act included changes for businesses and individuals. One of these is the creation of the Opportunity Zones tax incentive, an economic development tool that allows people to invest in distressed areas. This incentive’s purpose is to spur economic development and job creation in distressed communities by providing tax benefits to investors. Low income communities and certain contiguous communities qualify as Opportunity Zones if a state, the District of Columbia or a U.S. territory nominated them for that designation and the U.S. Treasury certified that nomination. Following the nomination process, 8,764 communities in all 50 states, the District of Columbia and five U.S. territories were certified as Qualified Opportunity Zones (QOZs). Congress later designated each low-income community in Puerto Rico as a QOZ effective Dec. 22, 2017. The list of each QOZ can be found in IRS Notices 2018-48 and 2019-42. There’s also a visual map of the census tracts designated as QOZs.
Benefits Of Investing In Opportunity Zones
PORTLAND, Oregon, Sortis Holdings, Inc. (SOHI), a Portland, Oregon-based alternative investment fund manager, announces the launch of its sixth investment fund, the Sortis Distressed Opportunity Fund, which will look to capitalize on “once-in-a-cycle” real estate and business opportunities created as a result of the COVID-19 outbreak.
The Sortis team does not estimate a lengthy recession following the pandemic, but they do believe the crisis will have a deep enough impact on certain areas of the real estate market to create special situation opportunities. While the fund will remain asset class agnostic, the management team is eyeing a few particular areas within the real estate market initially.
The Sortis Distressed Opportunity Fund will look to acquire qualified distressed debt, physical real estate, and select operating businesses across the Western United States. This could include, but not limited to: failed projects, discounted performing & non-performing loans, foreclosures, bankruptcies, and other complex situations.
Building upon its existing fund family foundation, the Sortis team will continue its thematic approach into distressed opportunities, while maintaining a keen focus on capital preservation through built-in downside protection and safeguards.