Qualified opportunity zone funds are a newer concept in the financial world. They were formed in December 2017 as a result of the Tax Cuts and Jobs Act of 2017, providing investment into qualified opportunity zones which were developed to revitalize impoverished areas of certain cities. The idea was to create jobs and allow those in these communities to start businesses, bettering the neighborhood and raising it from poverty.
These qualified opportunity zone funds have been targets for investment from those with large capital gains. If someone has sold a business, for example, they can put the gain earned from that sale into a qualified opportunity zone, and won’t have to pay tax on these investments after a certain amount of years, because the IRS has allowed tax incentives to those who put money into these funds. These are only available until the end of 2026, December 31, so they are a very current financial opportunity, but one that should be considered by anyone with a capital gain of any kind.
These are not widely talked about, perhaps because they are so novel and temporary. Dupré Financial Group, however, a wealth management office in San Antonio, Texas, has been investing in them since they began. This office is owned by Eric Dupré, a veteran of the financial world for decades now. After a long partnership, Dupré’s office broke off on its own very recently. It has experienced the same level of success as it did while it was dependent, working with more affluent clients who have more valuable assets to handle.
These happen to be the types of clients who may look into qualified opportunity zone funds. Dupré Financial Group delivers on this, making sure to present these as an option, something many other advisors simply do not know about or know how to deal with. Dupré typically presents these funds to clients as an option upon selling their businesses, so that they retain more of the money they are awarded through this transaction. Many of these investments are specifically in deliverable warehouses and start paying income after just a few years. Dupré loves working with these funds because he sees it as a win-win for both his client and the community involved. The client receives the tax break, and the zone receives the help it needs.
These are ten-year investments, so as long as they are made before the 2026 cut-off, they will carry through for a decade. They offer many more forms of investment than that through warehousing; multifamily housing, commercial buildings, and any other form of infrastructure can be invested in through these funds. Each fund has a manager that determines how much gets invested into what, and it all depends on circumstances. For example, the pandemic has seen a boom in online sales, so these deliverable warehouses that Dupré prefers are receiving more focus as this trend continues.
While these funds exist, they might be something to look into for anyone who may apply within Dupré’s target demographic. These funds are not receiving enough investments as they are not very public, and they can help you financially while helping bolster the less fortunate in the process. Depending on how the government reacts to the deadline, or how successful they become, the 2026 cap may even be extended; for now, however, this opportunity is only here for a few more years, and Dupré Financial Group is one of few offices out there that can help you explore your opportunities with one right away.