Scottsdale, Ariz.-based Caliber – The Wealth Development Co. has made its first acquisition for its recently launched Tax Advantaged Opportunity Zone Fund.
Caliber is working in partnership with Rio Nuevo to bring a top-tier branded hotel to the Tucson Convention Center. The 170-room property will be physically attached to the convention center and include 4,000 square feet of meeting space, a coffee shop and bar, a restaurant, and a rooftop pool. Construction is slated to begin in first quarter 2019 with a summer 2020 completion date.
Recently, the IRS issued proposed regulations for Qualified Opportunity Zone Funds (QOF), notably including some flexibility in the 180-day investment timeframe. Originally, capital gain from a sale or exchange of any property, sale of stock, sale of business assets, or other sources of gain could be reinvested in a QOF only within 180 days of the gain being realized. Under the new regulations, investors can choose to defer that window until the end of the taxable year if their gain is generated from ownership of a partnership. This means investors realizing capital gain anytime in 2018 can elect to have the 180-day period start on Dec. 31, giving them until June 2019 to reinvest those funds.
