Opportunity Fund
Defer capital gains tax with Opportunity Zones under the Tax Reform Act
The recently passed Tax Reform Act included a potential tax break for investors. An investor may defer capital gains taxes on the sale of any opportunity zones asset. These taxes can potentially be deferred until December 31, 2026, or the date of a sale (whichever is earlier). As discussed below, this original capital gains tax is reduced over time, and if held long enough, new appreciation on the investment can be realized tax free.
How does the opportunity zones program work?
An investor sells an asset and generates a capital gain. The capital gains from that investment must be reinvested within 180 days into a designated Opportunity Zone (OZ). An OZ is a specially designated census tract. Large parts of the U.S. are eligible for designation, including many commercial, industrial and residential areas.
If the investment is held, the capital gains liability on the original investment will be reduced by 10% after five years and by 15% after seven years. After 10 years, the new capital gains taxes generated from the opportunity fund investment are reduced to zero.
We believe this is one of the most beneficial tax reforms in decades. Learn how Rocco Forino Capital can help you potentially take advantage of this opportunity.
Rocco Forino
CEO
Rocco Forino Capital LLC
Summary of the
Risks of the Offering
Risks of the Offering
Specifically, investors in this Offering risk losing all capital invested therein and/or may not generate the returns at the levels the Company expects.
Prohibition of Transfer of Membership of Transfer and Withdrawal of Membership from the Company; Members may not withdraw without Consent of the Company Manager or in contravention of SEC Rule 144.
Opportunity Zone
Program Risks
Program Risks
The Opportunity Zone Program is newly created, and final regulations have yet to be issued, which, when issued, may impact the Fund in unanticipated ways.
To take advantage of certain tax benefits, regarding the exclusion of future gains, investors must hold their investments in the Fund and the Fund must maintain its status as Qualified Opportunity Fund, for 10 years.
The Manager’s intent to comply with the requirements of Section 1400Z of the Code may adversely affect the timing or structure of exit from investments or the success of those investments.
Opportunity Zone
Real Estate Risks
Real Estate Risks
The Opportunity Zone Fund’s business is subject to all the risks associated with the real estate industry.
Investments in real estate are speculative in nature.
The Manager’s intent to comply with the requirements of Section 1400Z of the Code may adversely affect the timing or structure of exit from investments or the success of those investments.
Many of these factors are not within the Fund’s control and could adversely impact the value of the Fund’s investments. These factors include, but are not limited to:
- Conditions affecting real estate in specific markets in which the Fund may invest, such as oversupply or reduction in demand for real estate;
- Changes in interest rates and availability of attractive financing;
- Changes in real estate and zoning laws;
- Environmental and/or engineering issues unforeseen in due-diligence, and changes in environmental legislation and related costs of compliance;
- Condemnation and other taking of property by the government;
- Changes in real estate taxes and any other operating expenses;
- The potential for uninsured or underinsured property losses.
ROCCO FORINO CAPITAL FUND I
By investing in the RFC Opportunity Zone Fund I, investors will ignite the fuse to jumpstart impact investing efforts in distressed communities (Opportunity Zones) while making impressive financial returns and enjoying potential tax incentives.
This is not an offer to sell nor a solicitation to buy Rocco Forino Capital LLC Opportunity Zone Fund I, LLC (RFC-OZFI). That can only be done by our current confidential Private Placement Memorandum (“PPM”). This is considered a speculative investment for accredited Investors only, who can stand to lose their entire investment. Limited liquidity. The equity interests being sold in this offering have not been approved or disapproved by the Securities and Exchange Commission or any state’s securities division. Nor has the Securities and Exchange Commission or any state securities department passed upon the accuracy or adequacy of the PPM or the disclosures provided therein. Rocco Forino is a Managing Member of Rocco Forino Capital LLC.
