For over a decade, Brian Sidman has been involved in real estate acquisitions and investments. The managing principal of BAS Holdings Investments, LLC, Brian Sidman focuses on parking investments, land parcel acquisitions and qualified opportunity funds.
Qualified Opportunity Funds are investment vehicles that are formed as partnerships or LLCs. They are privately managed and are required to invest 90 percent of all their assets into qualified opportunity zones. Qualified Opportunity Funds were a creation of the Tax Cuts and Jobs Act of 2017. The funds were created as part of a tax incentive program to spur investment in low-income areas across the country. The act allowed investors who realize a capital gain in their investments to defer capital gains tax payments or eliminate up to 15 percent of the taxable gain by investing the gains in qualified opportunity funds, which channel the money to qualified opportunity zones.
These qualified opportunity zones are low-income communities nominated as such by the state's governor and certified by the U.S. Treasury Department. Once an area is certified, it retains its designation for a decade. The area will benefit from additional investment and job creation for as long as it is eligible. If investments made by investors in qualified opportunity funds lead to gains after 10 years, these gains, once realized, are not taxable.
