Issuer
Free Writing Prospectus dated December 27, 2022
Filed
Pursuant to Rule 433
Registration
No. 333-255424
Volume 2, Edition 148 December 20, 2022
Subject
line — 2022 Capital Gains Tax Deferral Deadline Is Ticking
Away
Headline: Opportunity Zone Funds Shelter 2022 Taxes Until December
31, 2026
The
180-day lookback period for 2022—the maximum period for which you
can reinvest realized capital gains into a Qualified Opportunity
Fund (“QOF”)—is ticking away. Once January 1, 2023 arrives, the
window to defer capital gains realized in 2022 narrows with each
passing day.
One
of the most compelling aspects of QOFs, in my mind, is that the
structure does not discriminate against the source of capital
gains. Investors who have realized capital gains in one or a
variety of assets in the past 180 days, whether from the sale of
real estate, stocks, bonds, mutual funds, a business, collectibles,
planes, boats, livestock, cryptocurrencies, precious metals, an
interest in a partnership, etc., should, in my opinion, seriously
consider reinvesting those capital gains into a QOF—like Belpointe
PREP, LLC (NYSE: American “OZ”). Doing so will defer federal, and
in most cases state, taxes on those capital gains until December
31, 2026 (provided you continue to hold the QOF investment), plus
having those gains reinvested in a QOF will provide for the
potential of generating income and capital appreciation, most or
all of which may be tax-free.
Have
You Realized Capital Gains?
Defer and Possibly Eliminate Capital Gains Tax Liability. The first
and only publicly traded Opportunity Zone investment structure in
the United States.
We
spell out how this alternative can work for you in our updated
white paper. Follow this link here to request the Publicly
Traded Opportunity Zone Investing White Paper.
Want
more information? There’s a wealth of detail on our website at
https://investors.belpointeoz.com/ where investors and
advisors alike can learn about Belpointe PREP, LLC (“Belpointe OZ”)
and some of its key features.
Have
questions as the year-end quickly approaches? Call today and I’ll
take the time to answer as many of your questions about Belpointe
OZ and how reinvesting capital gains into a QOF can be utilized to
offset capital gains tax obligations as I can. My direct number is
(203) 883-1944.
At
Belpointe OZ we consider 2022 to have been a year of incredible
growth, with our portfolio of properties and property interests now
sitting at 15 holdings which are at varying stages of full-on
buildout, development, redevelopment, demolition, architectural
conception and permitting. And, with our team of experienced
development and construction experts leading the way, we are very
excited for what the year ahead will bring. Belpointe OZ currently
has five properties in Sarasota, Florida, three in St. Petersburg,
Florida, five in Nashville, Tennessee, and two in Connecticut; and
we’re just getting started. The plan forward into the new year is
to continue to build out full-featured Class-A apartment projects
while also acquiring seasoned and stabilized assets that can
generate income.
For
example, 1991 Main Street (“1991 Main”), located at the
intersection of Main Street and Links Avenue in downtown Sarasota,
Florida, will be redeveloped into an approximately 418-apartment
home community, consisting of one-bedroom, two-bedroom and
three-bedroom apartments, and four-bedroom townhome-style penthouse
apartments. 1991 Main will feature two high-rise buildings with
approximately 51,000 square feet of retail space located on the
first level, and approximately 721 parking spaces including 590
from an existing parking garage, currently subject to a parking
garage easement agreement, 104 new underground spaces and 27 new
street level spaces. We anticipate amenities at each building will
include a clubroom, fitness room, center courtyard with heated,
saltwater pool, grills and seating and rooftop amenities, including
a community room and a private dining area for private events as
well as outdoor grills and seating. Adjacent to the roof top
amenities at each building, will be three guest units available to
guests or families of residents for a fee. Each building will have
its own leasing office located in the entry lobby.

I think it’s also important to mention, particularly considering
the time-sensitivity around investors and advisors having to decide
whether investing in a QOF is a smart year-end choice, that
Belpointe
OZ is the only QOF traded on a national securities exchange as a
public real estate partnership structure. I would argue that this
greatly simplifies the process for all classes of investors and for
those advising investors alike. I talk about this aspect of
Belpointe OZ, along with what I think are other key features of the
structure, in a recent Wealth Management Magazine webinar
that features Belpointe OZ’s CEO Brandon Lacoff (which you can
access here). I think the webinar really helps to highlight
the salient benefits and potential challenges of investing in
Opportunity Zones.
Making a list and checking it twice should be part of any due
diligence process. Hence, I want to note some features that are
common to all QOFs, and some that are specific to
Belpointe
OZ, which I have included in bold type:
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QOFs
provide for pass-through income, thereby avoiding double taxation
for investors; |
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QOFs
provide for pass-through depreciation, with no depreciation
recapture if an investment is held for 10 years, up to December 31,
2047; |
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QOFs
require annual distributions of at least 90% of taxable
income; |
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QOFs
provide for up to a 20% reduction on taxable distributions via
Internal Revenue Code Section 199A; |
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Belpointe
OZ provides for asset diversification; |
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Belpointe
OZ provides investors with greater control over their exit timing
and amount; |
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Belpointe
OZ offers low minimums for investor access; |
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Belpointe
OZ unitholders will not be asked to add additional capital for any
type of improvements or problems with investment
properties; |
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● |
Belpointe
OZ provides investors with better reporting, transparency, and
oversight; |
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Belpointe
OZ provides investors with the opportunity for daily
liquidity; |
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Belpointe
OZ allows both accredited and non-accredited investors to access
the investment class; and |
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Belpointe
OZ simplifies the investment purchase process. |
Invest
in Opportunity Zones For Tax Advantages and Growth
Click Here To Download The Latest White Paper
Further,
in its effort to disrupt the U.S. real estate industry, Belpointe
OZ is charging among the lowest fees in the market:
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No
investors servicing fees; |
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No
disposition fees; |
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0.75%
annual management fee; and |
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5%
carried interest. |
It is
important to act quickly, as the 2022 clock for deferring capital
gains taxes is ticking.
We
spell out how this alternative can work for you in our updated
white paper. Follow this link to request the our Publicly
Traded Opportunity Zone Investing White Paper.
Have
questions about how Belpointe OZ (NYSE American: “OZ”) can provide
opportunities for investment appreciation and income and help you
or your clients to defer or eliminate capital gains tax
obligations?
Call
me, Cody Laidlaw, at (203) 883-1944. I can answer your questions
and direct you to resources that will provide you with information
about the nuts and bolts of QOFs and opportunity zone investing, so
you can start planning today.
You
can also follow this link here to request our updated White
Paper.
Cody
H. Laidlaw
Editor-in-Chief
255 Glenville Road
Greenwich, CT 06831
T: (203) 883-1944
E: IR@belpointeoz.com
Disclosure:
Cody H. Laidlaw is the Chief Investor Relations Officer. Cody is
also an investment advisor representative with Seaside Advisory
Services, Inc. (d/b/a Seaside Financial & Insurance Services),
a SEC registered investment adviser offering advisory accounts and
services, and holds a long position in Belpointe PREP, LLC’s Class
A units.
Important
Information and Qualifications
Belpointe
PREP, LLC (“Belpointe OZ”) has filed a registration statement
(including a prospectus) with the U.S. Securities and Exchange
Commission (SEC) for the offer and sale of up to $750,000,000 of
Class A units representing limited liability interests in Belpointe
OZ. You should read Belpointe OZ’s most recent prospectus and the
other documents that it has filed with the SEC for more complete
information about Belpointe OZ and the offering
Investing
in Belpointe OZ’s Class A units involves a high degree of risk,
including a complete loss of investment. Prior to making an
investment decision, you should carefully consider Belpointe OZ’s
investment objectives and strategy, risk factors, fees and expenses
and any tax consequences that may results from an investment in
Belpointe OZ’s Class A units. To view Belpointe OZ’s most recent
prospectus containing this and other important information visit
sec.gov or belpointeoz.com. Alternatively, you may
request Belpointe OZ send you the prospectus by calling (203)
883-1944 or emailing claidlaw@belpointe.com. Read the
prospectus in its entirety before making an investment
decision.
This
communication may not be distributed in any jurisdiction where it
is unlawful to do so. Nothing in this communication is or should be
construed as an offer to sell or solicitation of an offer to buy
Belpointe OZ’s Class A units in any jurisdiction where it is
unlawful to do so.
Neither
Belpointe OZ nor any of its affiliates provide investment or tax
advice and do not represent in any manner that the outcomes
described herein will result in any particular tax consequence.
Prospective investors should consult their own investment and tax
advisers concerning the U.S. federal, state and local income tax
consequences, as well as any tax consequences under the laws of any
other taxing jurisdiction, in relation to their personal tax
circumstances, which may vary for prospective investors in
different tax situations.
This
communication may contain estimates, projections and other
forward-looking statements, typically identified by words and
phrases such as “anticipate,” “estimate,” “believe,” “continue,”
“could,” “intend,” “may,” “plan,” “potential,” “predict,” “seek,”
“should,” “will,” “would,” “expect,” “objective,” “projection,”
“forecast,” “goal,” “guidance,” “outlook,” “effort,” “target” or
the negative of such words and other comparable terminology.
However, the absence of these words does not mean that a statement
is not forward-looking. Any forward-looking statements expressing
an expectation or belief as to future events is expressed in good
faith and believed to be reasonable at the time such
forward-looking statement is made. However, these statements are
not guarantees of future events and involve risks, uncertainties
and other factors beyond Belpointe OZ’s control. Therefore, we
caution you against relying on any of these forward-looking
statements. Actual outcomes and results may differ materially from
what is expressed in any forward-looking statement. Except as
required by applicable law, including federal securities laws,
Belpointe OZ does not intend to update any of the forward-looking
statements to conform them to actual results or revised
expectations.
©2022
Belpointe PREP, LLC. All rights reserved.
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