A unique and superior investment vehicle for all investors who are looking to benefit from the tax-advantaged high-return investment opportunities available in Arizona.
The Fund is available to Accredited and Non-Accredited Investors with qualified capital gains, non-qualified capital gains, and investment capital. The minimum investment for Qualified Investors is $100,000, and for Non-qualified investors it is $10.000.
Tax Avoidance
Individuals and business owners often have more than one way to complete a taxable transaction.
Tax avoidance lowers your tax bill by structuring your transactions so that you reap the largest tax benefits.
Tax avoidance is completely legal—and extremely wise.
Opportunity Zone Investing
Opportunity Zones are an economic development tool that allows people to invest in distressed areas in the United States.
Their purpose is to spur economic growth and job creation in low-income communities while providing tax benefits to investors.
This investment is designed to help Accredited Investors reduce their tax burden by their investing capital gains funds for a minimum period of 5 years or any investment of funds for a minimum period of 10 years. This TCJA authorized tax avoidance program ends in 2047.
Financial Planning
We offer a one to one financial discussion of your tax situation and what your goals and needs are. We will help you determine if our SEC Regulation D 506(c) investment option works for your specific financial situation with our long term Arizona Opportunity Zone Fund investment.
This investment is designed for Accredited Investors with a minimum investment of
$10.000 or more. A few non-accredited investors (limited to 35) may join with us under
the SEC rules.
What Is A Qualified Opportunity Fund?
A Qualified Opportunity Fund is a new investment vehicle created as part of the Tax Cuts and Jobs Act (TCJA) of 2017 to incentivize investment in targeted communities called Qualified Opportunity Zones (QOZs) to spur economic development and job creation in these distressed urban and rural communities.
What Is A Qualified Opportunity Zone?
Opportunity Zones are low income census tracts nominated by governors and certified by the U.S. Department of the Treasury into which investors can now put capital to work financing new projects and enterprises in exchange for certain federal capital gains tax advantages.
The country now has over 8,700 Opportunity Zones in every state and territory.
Financial Planning With Arizona Opportunity Zone Fund..
Investing in the Arizona Opportunity Fund LLC can be done by completing our application and review. You are welcome to have a one on one conversation to determine if we are a fit for your financial and tax goals. We have plans for different investment opportunities and will discuss our plans with you to help you determine if our tax advantaged investments work for you. Each person’s tax situation is unique and these long term investments may or may not be a fit for you.
To take advantage of the tax savings of an opportunity zone investment there are two different levels to invest at. The first is with capital gains you have earned from other investments such as stock or real estate and you want to avoid federal tax by investing those earned gains in an opportunity zone. Those funds need to remain in the fund for a period of at least five years as specified by the IRS.
The second method is to make an investment of non-capital gains funds in the opportunity fund and allow them to stay in the fund for a period of ten years.
The fund will remain an opportunity zone until December 31, 2047, based on the TCJA of 2017. We believe that with the change in the federal administration from the 2020 election that the law will remain in place.
Why to invest in Arizona Opportunity Zone Fund?
INVESTORS CAN RECEIVE THE FOLLOWING FOUR MAJOR BENEFITS BY ROLLING THEIR CAPITAL GAINS INTO qof WITHIN 180 DAYS
Defer Capital Gains
Investors can defer recognition of the capital gain invested until up to December 31, 2026 and postpone paying the federal tax obligation until the tax return due date in 2027.
Reduce Capital Gains
Investors receive a 10% step-up in basis of any capital gains invested in QOFs, if the QOF is held for 5 years prior to December 31, 2026.
After 10 Years No Additional Capital Gains Tax
If the investor holds the QOF investment for 10 years, any additional gain (in excess of the deferred gain recognized in 2026) on the sale of such QOF investment is not subject to federal income tax if sold prior to 2048.
Receive Dividends From Income & Depreciation
Investors might also receive income distributions from the QOF’s earnings.
The fund’s investments in real estate and other depreciable assets will have
depreciation that can be shared with the funds investors based on their
investment in the fund on a percentage basis.
Our Projects
ARIZONA LIGHTWEIGHT MATERIALS LLC (ALM)
ALM is an Arizona based company that has been working with a German company that has developed a light weight concrete.
This lightweight concrete has nearly the same strength as regular concrete, but about half the weight.
ALM has purchased the unique needed equipment for production of the lightweight concrete and have it located in Casa Grande Arizona in a qualified opportunity zone.
However, they need funds to complete the plant setup to begin operations and to market the product here in the southwest.
This effort requires $500,000 to bring it to market.
Future plans:
The Arizona Department of Transportation (AZDOT) is very interested in a very high strength concrete that has been developed and proven.
ALM will be working to find projects in and outside of AZDOT where it can be used. This effort will require $500,000 for equipment to bring it to market.
CORNERSTONE MASONRY SYSTEMS LLC
During the past few years, a few PhD’s from Arizona State University in Tempe Arizona have developed a new stucco that has an R factor of 12. It is currently undergoing testing before it will be licensed to go into production here in Arizona. The patents are applied for and granted.
Our investment will provide the funds to begin operations as an equity partner. They will locate in an Opportunity zone most likely in Casa Grande AZ. The area has access to both major rail and interstate highways for shipping. Our plan is to acquire the land and build their needed plant for the stucco’s eventual full production. The site chosen is located is in a Qualified Opportunity Zone next to the rail line and has easy access to Interstate highways 8 and 10, from the property.
Cornerstone requires $2 million for the acquisition of the land, building the production facility and its required equipment, and for the first 12 months of operating funds.
Our plan is to use our Opportunity Zone Funds to purchase the land and build the plant required. We will retain title to the land and building leasing it Cornerstone. We will also join with the company as an equity partner to fund the operations and marketing to get the R12 stucco in production and marketed.
This investment is for the new facility, the production equipment, and first year’s funding for operations, and marketing of the R12 stucco.
Some stucco will be produced in an existing facility not owned by the fund until the new facility is completed. Cornerstone, under its license, will control all rights to the new R12 Stucco production. Will require additional funds for further marketing and expansion after the first year and likely will need another $8 million over the next four to five years. All funds coming into the AZ Opportunity Zone Fund will participate fully with these first planned development firms.
“Being rich is having money, being wealthy is having time.”
— Margaret Bonnano
