Kay Properties Helps Investor Defer Capital Gains Taxes with a Qualified Opportunity Zone Fund Following the Sale of a Rare Computer

Working closely with both the client and their CPA, Kay Properties successfully educated and helped the client complete the tax advantaged Qualified Opportunity Zone Fund investment strategy.

TORRANCE, Calif., Dec. 13, 2023 /PRNewswire/ — Kay Properties & Investments, a real estate investment firm that operates www.kpi1031.com , an online marketplace of 1031 exchange eligible investment properties and other tax advantaged real estate strategies, announced it has successfully helped an existing client complete two Qualified Opportunity Zone Fund (QOZF) investments following the sale of a vintage Apple One computer that was signed by Apple Computer co-founder Steve Wozniak.

According to Dwight Kay, Founder and CEO of Kay Properties, this transaction was unique because while the client had completed several real estate investments with Kay Properties over the years, both he and his CPA were unfamiliar with Qualified Opportunity Zones as a unique investment strategy that could potentially provide long-term investment appreciation while also deferring the capital gains taxes incurred following the sale of this rare Apple computer.

“The Qualified Opportunity Zone Funds (QOZF) have become an integral part of the investment landscape in recent years for those investors seeking deferral of capital gains taxes on the sale of appreciated assets. Kay Properties has helped numerous accredited investors understand and participate in Qualified Opportunity Zone Fund investments. This was a ‘unique situation in that the client had used Kay Properties for his 1031 exchange DST investments over the years, but now needed our help to educate him and his CPA on how a QOZF investment could potentially work for his situation,” said Kay.

What is a Qualified Opportunity Zone?
According to Senior Vice President, Alex Madden, who played an integral part in the transaction, QOZs are not as well known among investors as a 1031 exchange, but were created by Congress as part of  the Tax Cuts and Jobs Act of 2017. The purpose of QOZs was to encourage long-term investments in low-income communities across the U.S.

“With Qualified Opportunity Zones, you sell a business or stock or even something like a iconic computer, and can defer the taxes on the gain of that sale, and keep the basis. Then if the Qualified Opportunity Zone remains active for 10 years and at least one day and the developer potentially doubles the amount of money in the fund (as always there are no guarantees for this), the investor receives a stepped up basis on the entire investment,” said Madden*.

According to Kay Properties Senior Associate, Nick Snyder, who also participated in the QOZ transaction, the client decided to invest in a multifamily apartment QOZ project as well as a mixed-use building QOZ project.

“There are more than 8,700 QOZs in the country, by investing in these zones, individuals like our client can receive tax incentives and deferrals. Because QOZ investments can be very complicated, not many firms understand all the nuances and potential risks of this investment type. That’s why we worked very hard to help this investor and his CPA understand the potential risks and benefits of QOZs, and how they could be utilized in his very unique situation,” said Snyder.

About Kay Properties and www.kpi1031.com

The www.kpi1031.com platform provides access to the marketplace of typically 20-40 DSTs from over 25 different sponsor companies, custom DSTs only available to Kay Properties clients. Kay Properties team members collectively have over 200 years of real estate experience and have participated in over $30 Billion of DST 1031 investments.

*Past performance is no guarantee of future results. *Diversification does not guarantee returns and does not protect against loss. *Preferred return is not guaranteed and is subject to available cash flow. *These examples are the experiences of a few of our clients and may not represent the experience of others. *These testimonials may not be representative of the experience of other clients. These clients were not compensated for their testimonials. Please speak with your attorney and CPA before considering an investment. *All DST properties shown are Regulation D Rule 506(c) offerings. All Offerings are subject to availability. There can be no assurance that any DST properties and offerings will be available for purchase. *DST 1031 properties are only available to accredited investors (generally described as having a net worth of over $1 million exclusive of primary residence, and/or possessing an annual income of over $200,000, or $300,000 with a spouse and expects the same or greater for the current year) and accredited entities (generally described as an entity owned entirely by accredited investors and/or owning investments in excess of $5 million). Please check with a qualified CPA or attorney to determine if you are accredited.

This material does not constitute an offer to sell nor a solicitation of an offer to buy any security. Such offers can be made only by the confidential Private Placement Memorandum (the “Memorandum”). Please read the entire Memorandum paying special attention to the risk section prior investing.  IRC Section 1031, IRC Section 1033 and IRC Section 721 are complex tax codes therefore you should consult your tax or legal professional for details regarding your situation.  There are material risks associated with investing in real estate securities including illiquidity, vacancies, general market conditions and competition, lack of operating history, interest rate risks, general risks of owning/operating commercial and multifamily properties, financing risks, potential adverse tax consequences, general economic risks, development risks and long hold periods. There is a risk of loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, potential returns and potential appreciation are not guaranteed.

Nothing contained on this website constitutes tax, legal, insurance or investment advice, nor does it constitute a solicitation or an offer to buy or sell any security or other financial instrument. Securities offered through FNEX Capital, member FINRA, SIPC.

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SOURCE Kay Properties and Investments