MIAMI, Oct. 01, 2019 (GLOBE NEWSWIRE) -- With three months remaining for 2019, Opportunity Zone Funds and their investors are facing a dilemma. Flush with billions of dollars in cash, they must get the money invested in actual projects in low-income communities by December 31, 2019, in order to obtain the maximum tax benefit for their investors. Guess & Co. Corporation, a global stewardship solutions company that improves the welfare of people through energy, health care, technology and real estate through client partnerships with communities, companies and governments is addressing this challenge. Guess & Co. Corporation will partner with Opportunity Funds, companies and the local communities to facilitate opportunities that will qualify for investment. Through its core group of businesses and subsidiaries, Guess & Co. Corporation can promptly launch a business or real estate venture within any or all of the over 8,000 Opportunity Zones and manage those businesses in a way that mitigates risk for funds – fulfilling key roles as “opportunity developer”, “opportunity provider”, “opportunity manager”, “opportunity operator” and “opportunity maximizer” . Additionally, Guess & Co. Corporation leverages its expertise in understanding rural communities and distressed urban communities to design opportunities that take advantage of local, state and federal incentive programs such as tax credits. Those programs can enhance returns for Opportunity Fund investors. Guess & Co. Corporation structures the capitalization of the ventures so that the capital provided by Opportunity Funds is retained as cash equity, while leveraging that equity to obtain favorable growth financing at low rates. Guess & Co. Corporation’s team has over 50 years of combined experience and is uniquely suited to deliver packaged opportunities for Opportunity Funds that will satisfy requirements for year-end investment deadlines. The senior management team of Guess & Co. Corporation including Jerry D. Guess, chairman and CEO and Michelle Stewart, president, chief operating officer and chief financial officer are working together to facilitate the Opportunity Zone solutions being provided to clients of the company. “As a company committed to improving the welfare of people, we certainly want to do our part to help clients with getting capital into communities that really need it, while helping funds generate the returns and meet the requirements for the tax benefits their investors are seeking,” said Jerry D. Guess, chairman and CEO of Guess & Co. Corporation.
Guess & Co. Corporation Opportunity Zone Solutions Benefits:
- Clients can take advantage of a wholesale delivery of opportunities throughout the country.
- Clients can deal with a nationwide developer, provider, manager and operator of ventures which will mitigate risk through effective governance, prudent management and diligent business development.
- Clients can take advantage of a cohesive and comprehensive approach that can scale and be deployed in over 8,000 zones throughout the United States in timely manner to meet deadlines.
What is an Opportunity Zone?
An Opportunity Zone is an economically-distressed community where new investments, under certain conditions, may be eligible for preferential tax treatment. Localities qualify as Opportunity Zones if they have been nominated for that designation by the Governor of their state and that nomination has been certified by the Secretary of the U.S. Treasury via his delegation of authority to the Internal Revenue Service. Opportunity Zones were created by the Tax Cuts and Jobs Act of 2017.
What are the Tax Benefits?
The Opportunity Zone program offers several tax benefits to investors with capital gains. The tax benefits consist of: temporary deferral, step-up in basis and permanent exclusion. Most investors are seeking the maximum tax benefit of permanent exclusion.
Temporary Deferral
A temporary deferral of inclusion in taxable income for capital gains reinvested into an Opportunity Fund. The deferred gain must be recognized on the earlier of the date on which the opportunity zone investment is disposed of or December 31, 2026.
Step-Up In Basis
A step-up in basis for capital gains reinvested in an Opportunity Fund. The basis is increased by 10% if the investment in the Opportunity Fund is held by the taxpayer for at least 5 years and by an additional 5% if held for at least 7 years, thereby excluding up to 15% of the original gain from taxation.
Permanent Exclusion
A permanent exclusion from taxable income of capital gains from the sale or exchange of an investment in an Opportunity Fund if the investment is held for at least 10 years. This exclusion only applies to gains accrued after an investment in an Opportunity Fund.
About Guess & Co. Corporation
Guess & Co. Corporation is an emerging global stewardship solutions company with energy, health care, technology and real estate businesses. We partner with communities, companies and governments to improve the welfare of people. Guess & Co. Corporation is a registered contractor with the U.S. Government to provide solutions to federal government agencies and members of our company have active top-secret/SCI clearances. We are based in Miami, Florida and have over 20 subsidiaries. Guess & Co. Corporation was founded in August of 2017. The management team of Guess & Co. Corporation has over 50 years of combined experience.
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