Recent federal tax law changes have created the Qualified Opportunity Zone designation ("QOZ"), which allows investors to invest capital gains into a QOZ and defer the taxes due until 12/31/2026, with basis step ups if held for over five years. The primary benefit of QOZs, however, is the ability to avoid paying any federal tax on capital gains earned on the QOZ investment if the project is held for ten years. Pebb is already under contract on multiple QOZ land parcels and buildings in burgeoning areas buttressed by strong submarket tailwinds. Each opportunity includes a component of immediate development, as well as future development optionality creating the opportunity for enormous tax-efficient value creation and compounding.
Pebb Capital and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice.