OZ Fund Investors
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Can you benefit from an Investment in an Opportunity Zone?
In 2017, the US passed the Tax Cuts and Jobs Act (TCJA). This legislation introduced opportunities for tax favored investments.
The TCJA created the concept of geographic areas that allowed for tax favored investments, these are called Opportunity Zones. This was a new provision. There was no previous law.
For more details, refer to the IRS website here.
Investments in Opportunity Zones Funds may provide tax benefits to investors with capital gains
If an investor has capital gains, they can elect to temporarily defer tax on capital gains that are reinvested in a Qualified Opportunity Fund (QOF) that in turn invests in an opportunity zone area. The tax on the gain can be deferred until the earlier of the date on which the QOF investment is sold or exchanged, or Dec. 31, 2026. If the investor holds the investment in the QOF for at least ten years, the investor may be eligible for a permanent exclusion of any capital gain realized by the sale or exchange of the QOF investment. Detailed rules apply and Investors should check and confirm details with their advisors.
See the location of Opportunity Zones here.
ZenniHome Qualified Opportunity Zone Fund for Accredited Investors
Ownership Interests in a ZenniHome Qualified Opportunity Zone Fund (ZHQOF) are being offered and sold only to certified Accredited Investors pursuant to Rule 506(c) of Regulation D of the Securities Act.
ZHQOF is a Delaware limited liability company formed by two initial Members for the purpose of qualifying as a Qualified Opportunity Fund pursuant to the TCJA. The fund’s sole investment will be in shares of Series A Preferred Stock in ZenniHome Holdings Inc (ZHH) which is now and intends to continue to qualify as a Qualified Opportunity Zone Business pursuant to the TCJA.
The minimum investment is $25,000.