June 2019
Vol 6 | Issue 234

Q&A with Samuel Weiser


Principle Series:

Time Sensitive Opportunity Zone Alert

Maintain Optionality – Defer and Explore

This document is intended to provide information to help investors understand aspects of the relevant regulations issued by the Treasury related to Opportunity Zone investing. Nothing contained in is this document should be considered legal or tax advice and investors should consult their legal and tax advisors before making any decision to defer capital gains or make an Opportunity Zone investment.

As the deadline approaches for investors to defer their taxes on K-1 allocated gains, investors should strongly consider creating a QOF and maintaining their optionality to invest in Opportunity Zones. If you have already decided not to invest in Opportunity Zones you can stop reading now. However, if you want to keep your options open, you can easily defer and explore. To accomplish this objective and gain additional time to consider Opportunity Zone investments, investors need to create and fund a Qualified Opportunity Fund (“QOF”) by June 28th.

What do you achieve by funding your QOF before the deadline? You give yourself options. What is the impact of not deferring before the deadline? You permanently lose any option to defer the current taxes on your allocated gains.

If you fund a QOF you can spend the next 180 days looking at potential investments in Opportunity Zones. If you determine that suitable investments are not available, you can elect to unwind the QOF and simply pay the taxes due on the allocated K-1 gains. If you’ve already paid the estimated tax on April 15th, deferral gives you another 3 ½ months to evaluate your options with no impact other than the cost of setting up the QOF. Most importantly, this strategy buys an investor time to become better educated on Opportunity Zone investment opportunities and gain a better understanding of how the investor or family office can efficiently and effectively develop an investment program that takes full advantage of the law and corresponding tax benefits. If you decide to proceed, one option is forming a Qualified Opportunity Zone Business (“QOZB”) that can fulfill your investment objectives over a longer investment time frame.

JMP OppZone Services (“JMP”) provides turnkey solutions to quickly form and fund a QOF. JMP can assist investors in exploring their options. Our services expand to fully support Opportunity Zone investment programs including meeting the compliance and reporting requirements mandated under the law. If you would like more information on how we can assist you in meeting the rapidly approaching deadline to defer your K-1 allocated gains, please contact us.

About JMP OppZone Services LLC – JMP OppZone Services (“JMP”) assists investors interested in taking advantage of the tax deferral opportunities associated with Opportunity Zone investments. JMP also assists project sponsors in creating commingled vehicles to pool assets to fund investments in Opportunity Zone locations. JMP provides investors with a platform that provides maximum flexibility to leverage the benefits of the law and corresponding regulations. We can assist with getting the clock started on the deferral and holding periods. Through our network of professionals, JMP assists with structuring and support services to form the QOF creating a structure through an underlying investment in a Qualified Opportunity Zone Business (“QOZB”) that provides the investor with time to evaluate, select and invest in appropriate Opportunity Zone investments.

Family Office Insights is a voluntary, “opt-in” collaborative peer-to-peer community of single family offices, qualified investors and institutional investors. Join the community here www.familyofficeinsights.com

Samuel Weiser

Samuel Weiser is talented, seasoned executive with more than 35 years of financial management experience in financial services, entertainment and operational consulting. As a CPA, Sam’s financial accounting skills encompass SEC reporting, domestic and offshore compliance, budgeting, financial modeling, forecasting and investor reporting. His career background includes mergers & acquisitions, public and private capital raising, managing stock sales, issuance of convertible instruments, debt placement and providing financial oversight of operations. He also has a strong understanding of managing business risks including cybersecurity, liability management, funding and operations. As a professional with 35 years of financial operations experience, efficiency and effectiveness of structure, controls and professional retention are critical elements of what he contributes to his clients.

Sam formed JMP OppZone Services to provide a full suite of support services for Opportunity Zone investors and developers/entrepreneurs. JMP is primarily focused on projects in second tier and tertiary markets where jobs, housing and economic development are needed. These projects provide investors the opportunity to select Opportunity Zone investments achieving their desired social and investment objectives. There are attractive opportunities in these markets that will have significant impact in the communities that they serve. Most of our projects are too small to attract the large pools of capital being accumulated by real estate focused funds. More importantly, investors can pursue unique, long-term growth opportunities that achieve the primary objective of the law that created the concept of Opportunity Zones. Many of these communities also offer additional tax and investment incentives that improve the return prospects for these projects.

Email Sam here: sweiser@foxdalemanagement.com