Alternative Access - November 2019
TAX-FREE WINDFALLS A Definitive Look at Opportunity Zones
The opportunity zone (OZ) is a relatively new federal tax incentive introduced by the Tax Cuts and Job Acts of the United States of America. The policy behind the opportunity zone incentive is to encourage investors with capital gains to invest in low- income and undercapitalized communities (economically distressed areas that do not get a lot of capital revenues investments) in an attempt to promote the all-round rapid development of these communities (or tracts, as they are officially called). have heard investors, asset operators, and government firms talk about it, you will benefit from the following breakdown of what opportunity zones are, as well as how you, as an investor, or how your community or zone (if designated), can benefit from it. The legal repercussions and all the structuring aspects of opportunity zones will also be explained. Whether you are coming across opportunity zones for the first time or you
the zones which were formally designated by the U.S. Department of Treasury with no provision to change the communities categorized as opportunity zones. We have found that 8,762 tracts, which make up 12% of the U.S. census tracts, are classified as opportunity zones and some of the factors peculiar to these tracts are: low income, high poverty, and high unemployment rates. The value of real estate, as well as rents, are also considerably lower. The designated zones are inhabited mostly by minority groups with limited education.
have placed in the opportunity funds (QOF). If you place your capital gains in the funds for a minimum of five years, you get a 10% increase on the basis of your primary investment. If you place your gains in the funds for at least seven years, you get a 15% increase on the basis of the primary investment.
Permanent Tax Exclusion on New Gains
Now, this is the cake and the icing right here. When you invest in an opportunity zone for a minimum of 10 years, the new capital gains you realize from whatever investment your money was used for in the opportunity fund will be tax-free. If you hold onto your investment for 10 years, any additional appreciation is tax-free, and that is the home run right there. Especially if you are investing in a business or a property that has huge potential for significant appreciation, in 10 years you will have a field day with the profits. Can all investors claim opportunity zone incentives and what projects can you use opportunity zones to finance? On the community side, opportunity zones are great and provide value for communities and tracts as well as for the people living within them. Although, every investor may invest, but can everyone invest in opportunity zones? Unlikely. One of the functions of opportunity zones is that it mostly benefits a very narrow group of investors who have an appetite for high risk as well as illiquid investments. On the investor’s end, you stand the chance of earning a lot of tax-free profit.
What are the benefits of opportunity zones?
Diving right into it, the opportunity zone incentive has three major benefits for investors, and they are explained below:
Capital Gain Deferral
What tracts or communities are designated as opportunity zones?
If you decide to take advantage of the opportunity zone as an investor, you get the privilege to temporarily defer taxes on capital gains that you have previously realized. This means that the moment you put your active assets along with all the capital gains you have amassed from them into opportunity funds (opportunity funds are the investment mediums through which you can invest in opportunity zones, also called QOF), these capital gains will not be subject to taxation till the end of 2026. This only changes when you decide to sell the assets.
All U.S. State governors, along with the mayor of Washington, D.C., nominated
Partial Cancellation on Some of That Capital Gain
This means you get a basic step- up on some of the capital gains you
Real estate currently is the holy grail of these projects but not all real estate
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projects can be financed by opportunity zones. Only real estate projects that aim to substantially improve the properties. E.g. if you buy an approved land, you have to be doing an income-producing activity on the land before you can buy properties.
US Hybrid War Against Russia, Continued ... continued from Page 4
Here are some of the rules and regulations for investors in opportunity zones:
• An opportunity fund must have 90% of its assets invested in a designated or qualified opportunity zone (QOZ) or have its stock or partnership in a QOZ business. 70% of opportunity zone businesses assets must be located in a QOZ or meet other eligibility requirements. Recently, on April 17, 2019, the IRS clarified some opportunity zone regulations in an attempt to address the fears and confusion of many investors and encourage more opportunity zones investments. This is because the initial roles in the first kind of relations were very unclear on what constitutes 50% of gross income being derived from a trade or business. When do you have to have all your employees in the OZ? Do you have to make all of your products in the OZ? Do you have to only sell within the OZ? The IRS clarification mainly revolves around the 50% rule which will be explained below: •
We cite this as a comparison to 9/11. What are the other credentials for Dr. Pieczenik?
Pieczenik was deputy assistant secretary of state under Henry Kissinger, Cyrus Vance, and James Baker. His expertise includes foreign policy, international crisis management, and psychological warfare. He served the presidential administrations of Gerald Ford, Jimmy Carter, Ronald Reagan, and George H. W. Bush in the capacity of deputy assistant secretary. (This may mean something to the public, but the power in Washington at the CIA is not with the director but deep within the organization. It is an axiom here that if you know the name of the CIA operative, he is not important.) It is also quite interesting that the very, very high CIA Steve Pieczenik is going on Alex Jones’ Infowars identifying what really happened on 9/11. It demonstrates a division at the top, with Mueller having covered up 9/11 at the FBI, being appointed just before it for that reason, and Pieczenik being 40 stories higher than Mueller in the hierarchy, telling who all the U.S. players were at 9/11 and being given the information by a U.S. general. There were no members of Islam on those planes, and the boarding tapes were retroactively doctored by the CIA to show Arabic people who were not involved in 9/11 but were brought in to cover it up. Nor was ISIS involved at all, which we ourselves created to stymie Iran in Iraq, as it pitted our Sunni (ISIS) against al-Maliki and the Shia as a way to balance power in the Near East. Our sources are above the president, Congress, and the Supreme Court, who took over the fiasco from Cheney, who botched up the whole operation. They decided to blame Osama as an excuse to invade Afghanistan to restart the heroin plantations shut down by the noble Taliban. It was a historic double-cross comparable in infamy to the worst actions of Perfidious Albion (Note two British heroin wars against China in the 19th century). This would then finance the external operations of the U.S. intelligence agencies from the heroin profits in the trillion-dollar neighborhood and line not just a few of their pockets through control of 93% of the world’s heroin distribution. The fact that building No. 7 was not hit by a plane but went down anyway was almost a superhuman problem to get over. Only an idiot could have believed it after that.
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Employees and contractors of a qualified opportunity zone business must spend a minimum of 50% of their billable hours working inside an opportunity zone.
OR, for businesses that are not inside opportunity zones to qualify, they must:
• Have real estate located inside an opportunity zone, which will contribute at least 50% of the business’s income or; contractors and employees paid by the business must receive
these funds as a result of work done or conducted inside the opportunity zones.
The good news is you can reinvest in another asset. And this is good because it gives people additional flexibility in opportunity zone investments.
To be continued in the December 2019 edition.
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US HYBRID WAR AGAINST RUSSIA Continued
By David K. Lifschultz, CEO of Genoil, Inc. and the Lifschultz Organization of New York City, founded in 1899.
In 1978, Pieczenik was a special envoy for President Jimmy Carter in Italy to assist in the search for Italy’s prime minister, Aldo Moro. Pieczenik, as an international crisis manager and hostage negotiator in the state department, was sent to Italy on March 16, 1978. This was the day Moro was kidnapped, and Pieczenik was involved in the negotiations for the release of Moro. He was part of a crisis committee headed by Francesco Cossiga, the interior minister. Moro was held for 54 days, and Pieczenik said the committee was jolted into action by the fear that Moro would reveal state secrets in an attempt to free himself. Moro’s widow, Eleonora, later said Henry Kissinger had warned her husband against his strategy of historic compromise. “Compromesso storico,” or “You will pay dearly for it,” Kissinger is alleged to have said. A false statement, attributed to the Red Brigades, was leaked to the press saying that Moro was dead. Pieczenik revealed this had a dual purpose: to prepare the Italian public for the worst and to let the Red Brigades know the state would not negotiate for Moro and considered him already dead. (This was interpreted by the commandos as an instruction to liquidate Moro.) Moro was shot and placed in the back of a car in central Rome, midway between the headquarters of the communist party and the Christian democrats. In a documentary, Cossiga admitted the committee had taken the decision to release the false statement. Pieczenik said that Moro had been “sacrificed” for the “stability” of Italy. Moro’s eventual assassination has been attributed to the CIA as part of Operation Gladio by journalist Philip Willan. Continued on Page 3 ...
Continued from the October 2019 edition.
Here follows the credentials of the CIA psychologist Steve Pieczenik.
The killing of innocent civilians to achieve a strategic objective on not letting the communists take over Italy was considered justified as in the 9/11 false flag operation to initiate a war against Islam. Here in Italy, innocent civilians were killed blaming the communists in order to make sure they did not win the Italian elections. This was as unconscionable as 9/11. Even the kidnapping of Aldo Moro was set up by Western intelligence agents whose special forces infiltrated the Red Brigades to achieve the sophistication necessary to affect the kidnapping of a head of state. The
intelligence agencies were able to use the Red Brigades as a cover to conceal their
tracks. What happened here was that Moro wanted to create a fusion government in Italy with the communists, which was the vehicle the communists in Eastern Europe used to take over their
governments after World War II. So the CIA was completely right to see this as a strategic threat.
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