Opportunity Zone Incentive Overview
The Investing in Opportunities Act which passed in December 2017 created a unique tax incentive for capital gains to be re-invested in economically challenged communities across the United States and US territories – identified as “Opportunity Zones” to aid the economic turn-around of those communities.
There are two main incentives for capital gains to be re-invested in Opportunity Zones:
Deferral of Capital Gains Taxes including a reduction to 90% of the tax if the investment is held 5 years or 85% if held 7 years, for the period of time ending December 31, 2026.
If the investment is held 10+ years there are no future capital gains IRS taxes from the Opportunity Zone investment.
OZ Hotel Company FocuS
The focus of the OZ (“Opportunity Zone”) Hotel Company is to develop well though-out real estate projects in select Qualified Opportunity Zones featuring hotels as the integral component of those projects, which may include mixed use real estate development as well.
While Opportunity Zones create unique incentives for the investment of capital gains, the OZ Hotel Company will only seek projects which meet, traditional, rigorous hotel industry financial vetting and scrutiny.
The OZ Hotel Company also features a conservative and risk-averse financial structure designed to protect the long term interests of investors.
Sponsorship
The OZ Hotel Company is led by Adam Dubroff, a hotel industry veteran with over 25 years of executive experience in the development, management, and financing of select service Marriott, Hilton & IHG hotels as well as boutique hotels across the United States.
Adam is currently assembling an “Executive Team” and Board of hotel industry leaders and experts to assist in the oversight of the OZ Hotel Company.