Investing in Opportunity Zones


Opportunity Zones are transforming the way individuals and companies invest capital gains. The Sherbert Group partners with investors to explain and utilize this once-in-a-generation legislation. In order to receive maximum benefit, investments must be made before Dec. 31, 2019.

Literally, any U.S. taxpayer with capital gains can potentially benefit from this new tax incentive, including:

  • Individuals or corporations looking to reinvest gains from sales of property in order to defer and reduce taxes;
  • Real estate developers and start-up companies located in an Opportunity Zone that are looking for equity investment, and;
  • Real estate sponsors, syndicators and/or private equity funds looking to create Opportunity Funds and then make investments in Qualified Opportunity Zone Property, including investments in corporations, partnerships or direct investments in property.

Under the Opportunity Zone program, three major buckets of opportunity exist:

  • Bucket 1 – Deferral: Gain on a property sale that is invested in a fund is deferred until the earlier of the date that the taxpayer sells its interest in the fund or Dec. 31, 2026.
  • Bucket 2 – Capital Gain Reduction: If the taxpayer invests in the fund for at least five years, 10% of the original gain is excluded. If the investment lasts for at least seven years, an additional 5% (for a total of 15%) of the original gain is excluded.
  • Bucket 3 – Appreciation Exclusion:  If the taxpayer invests in the Qualified Opportunity Fund for at least 10 years, all appreciation in the new investment will be tax-free.

With 25 years of experience, The Sherbert Group is uniquely positioned to ensure these Opportunity Zone deals are properly funded, properly structured and properly managed.

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