Zone Opportunity Fund Inc. | ZOF Management LLC

In December 2017, the federal government created an economic stimulus program designed to spur investment in distressed communities (i.e., “Opportunity Zones”) by providing never-before seen tax benefits to investors. The Tax Cuts and Jobs Act allowed for the creation of “Qualified Opportunity Funds” (QOFs) in which taxpayers are able to reinvest capital gains in order to defer taxes thereon (for up to 7 years) while receiving up to a 15% tax exclusion for investments held in excess of 5 years, and a permanent tax exclusion from capital gains thereon for investments held in excess of 10 years.

In summary, here are the major benefits of investing in a QOF:
• Gain deferral – All gains invested in the QOF may be deferred in the year the temporary deferral election is made.
• Permanent tax exclusion of 10% taxable gain for investments held five years.
• Permanent tax exclusion of 15% taxable gain for investments held seven years.
• Permanent tax exclusion of 100% of taxable gain.
• With such unprecedented tax savings in mind, we founded Zone Opportunity Fund, Inc., the first only QOF operating as a private equity fund to invest (predominantly) in cannabis-related investments, including debt, convertible debt, stock (publicly traded), and private equity (i.e., stock and partnership interests).
• While most QOFs invest exclusively in real estate and offer modest returns, our Fund is unique in that we invest in CRBs and seek to offer a much higher ROI to our investors — our Fund’s Board of Directors was set up exactly for that purpose.