Park View OZ REIT is changing how tax-efficient portfolios are built. We are the only Qualified Opportunity Fund (QOF) structured as a publicly traded Real Estate Investment Trust (REIT). This unique investment vehicle allows our investors the ability to easily access these significant tax incentives and the flexibility to implement a myriad of tax-efficient wealth management strategies. Here are some of the ways we make QOF investing more accessible and more flexible.
No Minimum or Maximum holding period. Investors are free to leave early or hold until the QOF benefits end in 2047. The ability to hold a QOF beyond the initial ten-
year life of most QOFs opens up the potential for tax-free compound growth over more than two decades. This is a great way to create generational wealth.
The ability to hold a QOF for the short term also allows investors to enjoy tax-efficient plans that would not be available without liquidity. For example, a taxpayer selling a business and retiring may want to defer their capital gains liability, triggering portions of it over the next couple of lower-income years.
Another example would be a taxpayer who invests in volatile sectors, such as biotechnology stocks. When an investor has a capital gain, whether short-term or long-term, they can choose to pay the tax, or they may want to defer the tax by using QOF tax incentives. If they defer the gain and then suffer a future loss in any future year during the deferral period they can trigger all or a portion of their deferred gain by selling the appropriate portion of their QOF. This realization of a deferred tax liability in a year with a tax loss delivers tax efficiency while keeping capital working for you longer.
Eliminating complicated K-1 tax forms. Almost all QOFs are set up as partnerships. Park View OZ REIT is the only QOF structured as a publicly traded REIT (Real Estate Investment Trust). Our unique structure makes it significantly easier for our investors to enjoy QOF benefits.
Partnerships produce K-1 tax forms which, when compared to the 1099 form received on stock investments, are notoriously difficult and the information needed to file them is often late, forcing recipients to file yearly tax extensions. Investors receive K-1s from their own state and every state in which the partnership has tax liabilities. For an investment in a diversified fund, this could mean multiple K-1s to file every year. For illustration, if a QOF partnership owed tax in six states a ten-year hold would result in 60 K-1s needing to be filed – which adds unnecessary costs and complication to the investment. By contrast, as a REIT our investors get one 1099-DIV tax form no matter where the fund invests. Eliminating K-1s reduces costs and paperwork for our investors and enables the fund to pursue greater geographic diversification.
Eliminating Investor Accreditation Requirements. Private partnership QOFs have accredited investor requirements. This excludes most investors from being able to participate. Additionally, for investors who do meet the requirements, it can be inconvenient and potentially intrusive to prove they are accredited. As a public company, Park View OZ REIT investors do not need to be accredited.
Eliminating High Minimum Investment Requirements. Most Qualified Opportunity Funds often have investment minimums of $100,000 or more. This can be highly restrictive because only capital gains are eligible for QOF tax benefits so if you have a gain of $10,000, $50,000, or even $75,000 you could be out of luck, even though those gains would be well worth protecting. Investors can buy as few as one share of Park View OZ REIT stock (Trading Symbol: PVOZ) on the open market.
In addition to the items discussed above, Park View OZ REIT’s unique structure offers investors several other advantages over typical QOF partnerships including the transparency of publicly reported financials, lower fees, liquidity with no required minimum or maximum holding period, and the corporate governance of a REIT. We believe our public REIT structure delivers clear and significant advantages for opportunity zone investors.
Ready to discuss the advantages of investing with Park View OZ REIT? Get started with a free consultation now.