Virtua Partners is a global private equity firm with a specialty in commercial real estate. It holds significant investments in hotels and other hospitality properties throughout the country. Virtua Partners has targeted a $500m hospitality fund that will largely be deployed via Opportunity Zones, acquisitions and new development.
Opportunity Zone Investing
Defer capital gains tax with Opportunity Zones under the Tax Reform Act
The recently passed Tax Cuts and Jobs Act of 2017 created Opportunity Zones, which are specially created geographic districts that grant investors tax breaks for investment capital – including tax-free income.
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.
- The capital gains liability on the original investment will be reduced by 10% after five years
- Reduced by 15% after seven years
- After 10 years, the new capital gains taxes generated from the opportunity fund investment are reduced to zero.