Qualified opportunity funds reported raising over $2B of equity in the month of December alone, according to tracking data from professional services firm Novogradac & Co.’s January report.
The 502 QOFs tracked by Novogradac have now raised over $6.7B, an increase of more than 50% from the $4.46B reported at the start of December.
In order for an investor to get the maximum 15% tax discount on capital gains invested in opportunity zones through 2026, they needed to place such gains in a qualified opportunity fund by the end of 2019. Though other parts of the opportunity zone provision created by the Tax Cuts and Jobs Act of 2017 may prove more lucrative, some experts believed the deadline would be enough to move large sums off the sidelines.
“Barring legislation that extends the deadline for investment, the end of 2019 is a crucial date for some investors,” Novogradac Managing Partner Michael Novogradac said in a statement at the beginning of December.
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