Portland, OR · Member since 2016 · 21 posts · 0 votes
Here's the structure in our current operating agreement:
Investors get a 6% pref and everything beyond is split 50/50 between investors and sponsor (aside: split is very favorable to sponsor because sponsor brought 75% of capital and personally guaranteed the loan).
Since all original capital has been returned to investors, sale proceeds will be split 50/50 between investors and sponsor.
What I'd like is for the promote to be considered capital gains so it can be invested tax deferred into an Opportunity Zone Fund.
Apartment Syndicator · Charleston, SC · Member since 2016 · 973 posts · 728 votes
2y
@Chase Banta the gain the GP would make should be consider investment gains so I think you should be able to invest it into an OZ. You should check with an OZ specialized cpa and or attorney. You definitely don’t want to make the wrong decision and get hit with a tax event.