Opportunity Zones
A revolutionary approach to protecting gains while developing communities around the country.
What are Opportunity Zones
Opportunity Zones are specially designated census tracts reflecting areas needing economic development. They’re all part of Congress’s Tax Cuts and Jobs Act of 2017.
What are Opportunity Zone Funds?
Qualified Opportunity Zone Funds (QOFs) allow investors to defer and reduce taxes on capital gains by leveraging them in Opportunity Zone investments. QOFs are like a 1031 exchange, but with some key differences. For example, any realized gain can be rolled into an Opportunity Zone Fund.
How do these Impact Communities?
Opportunity Zones and Qualified Opportunity Funds were just introduced in 2018, but they’re purpose-built to stimulate local economies by creating businesses and development—redirecting resources to the areas needing it most.
Why Invest in an Opportunity Zone Fund?
Both individuals and companies can tap into the three main benefits of Opportunity Zone investing:
Defer
Temporarily defer taxes on initial capital gains. When you reinvest capital gains from property, stocks, and other assets into a QOF within 180 days of sale, no taxes are due for up to 7 years.
Reduce
Reduce taxes up to 15% by holding the fund for longer. At five years, Opportunity Fund investors get a 10% basis increase for tax deferral. At seven years, they get a 15% basis increase.
Eliminate
Pay zero taxes on fund profits by holding the fund for longer than 10 years. Investors who hold their QOF investments for ten years or more pay zero capital gains taxes on capital gains from their fund holdings.
How do Opportunity Zone Funds Compare?
| Opportunity Zone Funds | Traditional 1031 Exchanges | |
|---|---|---|
| Rollover restrictions | Invest any portion of your capital gains, whether it’s some or all | You must invest all gains and principal |
| Asset types | any investment | real estate only |
| Tax Reduction | Up to 15% reduction on initial investment after 7 years* | No tax benefits |
| Tax Elimination | 100% reduction (pay zero taxes) on new gains after 10 years | No tax elimination |
How Does Morpheus 1 Work?
Morpheus 1 provides trusted guidance, insider knowledge, and an individual touch. We understand that with cutting-edge investments like Opportunity Funds, investors need more than a one-size-fits-all approach. For this reason, working with Morpheus 1 means getting our expert advice firsthand and working directly with our principals.
Get in Touch
Just say hello! Our team will answer all your questions, talk through your investment goals, and get more info.
Connect & Invest
Once you’re ready, we’ll set you up with our secure portal, where you can manage your investment and communicate with the team.
Do Well. Feel Good.
Watch your tax-advantaged real estate investments grow while feeling good about building the next generation of vibrant Bay Area communities.