Improving Communities Through Opportunity Zone Investments | Here’s How You Can Benefit If You Are Sitting on Capital Gains (2024)

Courtesy of Caliber Co.

The IRS defines Opportunity Zones as “economically-distressed communities where new investments, under certain conditions, may be eligible for preferential tax treatment.”

“Launching in April of 2018, Opportunity Zone plans were put in place for communities in all 50 states. How it works is that each state nominates blocks of low-income areas by census tract, which are then certified by the Secretary of the U.S. Treasury via his delegation of authority to the Internal Revenue Service,” according to Forbes.

Funds are created to invest in Opportunity Zones, like the funds offered by Scottsdale-based Caliber, a leader in Opportunity Zone investments and wealth development.

Christine Gatti

If you are sitting on capital gains from the sale of a business, stock, property, crypto or other investments and need a tax advantage, dig in further now to understand how these powerful capital preservation tools work. Deadlines are rapidly approaching that will close the window for you to participate.

We talked with Chris Loeffler, CEO and Co-Founder of Caliber, who also serves as Chairman of the company’s board of directors. Loeffler directs and executes global strategy, oversees investments and fund management, and contributes to private and public capital formation. Loeffler took an early role forming the company’s financial and operational infrastructure, and above all, he prioritizes transparency and building trust with the company’s investors.

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ICONIC LIFE: As the company’s leader, what drives you every day?

Chris Loeffler: Our mission is that we’re creating wealth for good people. And that’s both for our investors and for our team members. But that means a lot of different things. It means building financial wealth. It means building peace of mind for our clients, but it also means building wealth for the community, building access to healthcare, building access to housing, building economic development, and greater property taxes for the local community to pay for services. All of those things are well wrapped within our mission and our values to get there at Caliber.

We always put our assets first, and by putting our assets first, we put our investors first, building trust. Caliber has a lot of great things going on. We have never seen the volume of incoming opportunities and projects that we’re seeing today.

Courtesy Caliber Co.

ICONIC LIFE: Describe the opportunity for investors.

Chris Loeffler: We have a tremendous amount of opportunity in front of us in our deal pipelines. We’re currently harvesting the profits from assets that we’ve been working to stabilize and optimize over the past four to six years. We’re seeing an unprecedented level of volume of incoming opportunities, investments, partnerships and developments that need support. And that’s creating great opportunity for us as investors and for our clients that are right in front of us. We’re spending most of our time to capture the market opportunity that came from the disruption that we’re experiencing.

Currently, we have about $450 million in assets under management and another $1.5 billion in assets in development. And we are forecasted to cross the multiple billion-dollar mark within the next several years.

Our Opportunity Zone Fund helps put capital to work in lower income areas and may provide certain tax advantages previously unavailable to investors. Prior to the Tax Cuts and Jobs Act of 2017, capital moved across America in a linear fashion, serving certain regions and populations while leaving others behind. There were few choices, including cash out with capital gains consequences, reinvesting in a similar asset class or a 1031 exchange. The latter is subject to quick turnaround times, lack of diversification, and to ultimately pay the full capital gains tax.

Charles Siritho

ICONIC LIFE: Who is a good candidate for Caliber’s fund?

Chris Loeffler: If you are sitting on capital gains from the sale of a business, stock, property, crypto or other investments and need a tax advantage, investing in Caliber’s fund can help defer taxes and preserve wealth.

ICONIC LIFE: How did Opportunity Zones come to be?

Chris Loeffler: This landmark 2017 legislation allows for the country’s wealth to be redistributed more inclusively across the country by using strategic tax incentives to guide capital into one of 8,760 federally designated Opportunity Zones. Investors, in turn, reap potential tax benefits on capital gains. Opportunity Zones may include multiple asset classes that allow taxpayers to diversify their investments through qualifying funds, businesses or individual projects.

Christine Gatti

ICONIC LIFE: What are the benefits of investing in Caliber’s Opportunity Zone fund?

Chris Loeffler: Caliber’s targeted investment areas includes 10 out of the 15 fastest-growing cities in the United States. According to the U.S. Census Bureau, there are four unique potential benefits to Opportunity Zone investing:
— Delay. You can defer capital gains where proceeds are timely invested in an Opportunity Zone fund until the date on which the investment is sold, or December 31, 2026.
— Decrease. You may reduce capital gains taxes up to 10 percent, if held for at least five years.
— Eliminate. You may reduce all or a portion of the taxable gain if held for at least 10 years as a qualified Opportunity Zone investment.
— Support. Finally, something we pride ourselves in—a Caliber Impact Fund supporting the building and revitalization of underserved communities throughout the country.

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Courtesy of Caliber Co.

ICONIC LIFE: How do you ensure that the asset has a successful investment plan?

Chris Loeffler: We’re accountable to our investors, and we’re accountable to the community to do what we said we were going to do. We’re respectful of everybody that we work with, whether you’re a smaller investor, a larger investor, whether you’re a local community member, a local government member or the national government.

ICONIC LIFE: Where is the company headed?

Chris Loeffler: We started by flipping homes, and today we’re building a 600-plus-acre mixed-use multi-billion-dollar development in Northern Colorado, and we are looking well into the future. We’re thinking about how we build a company where investors can come build trust once and invest with us decade after decade, generation, after generation. That’s what we’re building here. It’s a long-term vision with a long future for the company. It’s a place we hope you will choose to rely on us.

This content was produced in partnership with our friends at Caliber. If you’d like more information, click here to receive the “The Accredited Investor’s Guide To Qualified Opportunity Zone Investing” today!

Important deadlines are rapidly approaching. Get instant access to this special guide and bonus resources for FREE to learn more about this little-known investor program.

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