The Gravitas Fund is designed to capture the Qualified Opportunity Zone tax benefits made available to investors in the recently passed December 2017 Tax Reform Act. The Act created specially designated geographic districts that allows you to receive substantial tax breaks for investment capital. When the investment is held for 5 years, the tax basis in the original investment is increased by 10%, and after 7 years, an additional 5%. Once the investment is held for 10 years, you will recognize no capital gain income on the appreciation of the asset from the time of the initial investment in the QOZ. In 2018, Sebastian Partners purchased a 135-acre parcel of land, and formed the Gravitas Fund to bring this opportunity to you.
*Sebastian Partners and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.
*Subject to strict compliance with the IRS & Treasury Department Rules and Regulations.
By investing in the Gravitas Fund, you can: (1) defer capital gains taxes from the sale of appreciated assets until December 31, 2026 or the disposition of the qualified opportunity fund, (2) possibly lower capital gains tax up to 15% because of an increase in the basis of the appreciated assets used to buy the fund interest, and (3) possibly eliminate capital gains due on the appreciation in a qualified opportunity fund if it is held for 10 years or longer.
A new master planned community is already in the works and sits atop 287 acres in a designated Qualified Opportunity zone. 1,000+/- single-family residential lots, plus approximately 40 acres of commercial and the potential for multi-family is in development. The commercial and multi-family portions of the Project will likely qualify for Qualified Opportunity Zone (QOZ) preferential tax treatment.
The minimum investment in a QOZ Fund is $50,000, making it a highly accessible investment vehicle. The Sponsor intends to sell the single-family lots to homebuilders before it breaks ground on any of the commercial portions of the Project. It will likely form a new entity or entities, each of which qualify for QOZ tax treatment, for development of the commercial portions.
