Employees with Concentrated Equity

Investors with concentrated stock positions built over a long tenure of employment or rapid appreciation often face significant capital gains from stock compensation and liquidity events, but selling creates a large tax bill and leaves them searching for a smart way to diversify beyond a single concentrated position.

Opportunity Zones allow investors to defer capital gains taxes while reallocating proceeds into diversified, professionally managed real estate. Investors can then use the deferral period to employ other tax-aware strategies to further enhance their after-tax outcomes, such as tax-loss harvesting.

Employees can reduce near-term tax exposure, benefit from enhanced diversification, and potentially achieve tax-free appreciation over the long term while investing in real assets.

About the Opportunity Zone Program

Qualified Opportunity Zones (OZ) were created as part of the Tax Cuts and Jobs Act of 2017.

These zones were designed to spur economic development and job creation in communities throughout
the country by providing tax benefits to investors with eligible capital gains.

The OZ program incentivizes long-term investment to revitalize underserved, often underdeveloped
communities across the U.S.

Eligible Gains

Investors have 180 days from the day the capital gains event occurs to invest into a Qualified Opportunity Zone Fund.

OZ Tax Benefits*

*These tax benefits are associated with the current OZ program (OZ 1.0), effective through 12/31/2026.