Strategic Financial Services

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At Private Client Adviser, we provide premium strategic financial services.  

An Enhanced Opportunity Fund (EOF) is a concept comparable to a Qualified Opportunity Zone Fund (QOZ), however the EOF concept provides substantial benefits and flexibility over a QOZ. Private Client Advisers uses this advance planning technique to create the most favorable tax environment for your monies. We all know that your money can be taxed when as you earn it, during its growth, and when you consume it. 

With our Enhanced Opportunity Fund tactics and strategic financial services, you can invest with tax deferred monies. Your Investments grows in a tax free environment and your money is consumed on a tax free basis. We achieve this by designing a plan with a combination of our tax planning strategies. This design is also a fundamental part of our three dimensional planning strategy. By the very nature of how it is set up it protects your assets from frivolous creditors, creates the most favorable environment for your money to grow and flourish tax free, and includes a high level of estate planning to transfer your assets to the next generation of your legacy. 

To learn more about how you can use our strategic financial services to optimize your enhanced opportunity fund, call our team today. 

​Comparisons between a Qualified Opportunity Zone (QOZ) Fund and Enhanced Opportunity Fund (QOZ):

​Can you Defer Tax on the sale of a Capital Asset investing in a QOZ versus a EOF?:

QOZ:   Yes, until 2026                      
 
EOF     Yes, until 2050
 
Where Can I Invest: 
 
QOZ:
A QOZ Fund is required to invest money in one of over 8,765 “Approved Zones” and although investments can be made in any business found in a QOZ, however, to date the overwhelming investments are in Real Property.
 
​EOF:
An EOF can invest in ANY asset, Real Property, Start Ups, Private and Public Businesses, Hedge Funds, Private Equity, Stocks, Bonds, Fiat Currency, Cryptocurrency, Precious Metals & other Commodities, Futures, Options, Art & Collectibles, Gems, etc.  In addition, in many cases you can use leverage inside an EOP to Increase your Rate of Return.
 
Will I be taxed on income produced during deferral?
 
​QOZ:
With a QOZ you will receive the Capital Gain from the sale of the assets held in the Qualified Opportunity Zone Fund tax free as long as these assets are held in the Fund for at least 10 years, however if the asset of a QOZ produces ordinary income during the holding period you will be tax on this income whether or not the fund manager disburses the income to you or reinvest it in the assets of the fund.  Example:  The QOZ fund you invest in is used to build multi-family housing and then rents the apartments to consumers, the net income from the rents will be taxable to you in the year earned.

EOF:
With an EOF no tax is due from ordinary or capital gain income, even if you have funds disbursed to you during the 30-year holding period.
 
Step Up of Basis:
 
QOZ:
A QOZ allows a 10% Step up in basis if held for 5 years and an additional 5% step up in basis if held for 7 years (for a total of a 15% step up in basis) when tax is due on 12-31-2026.
 
EOF:
An EOF allows a 47% step up in basis when tax is due in 2050.
 
Can I Control or Direct where money is Investments?
 
QOZ:
You can set up your own QOZ and one of our services is helping clients set up and administrate their own QOZ Fund.  Most investments in a QOZ is with existing large QOZ Funds.  Most of these firms are lightly regulated, much less so that a Mutual Fund, ETF or even a Financial Management Firm.  Our suggestion is that you do substantial Due Diligence about the QOZ Funds you are considering investing with prior to committing to and investment.  On that note, Private Client Advisers provide a quite detailed Due Diligence audit into a QOZ Fund for our clients that want an outside, independent analysis.
 
EOF:
An EOF allows you to work with your Financial Advisors to design an investment portfolio that best meets your risk tolerance and with the help of you Financial Advisor you will be able to adjust your investment goals on an ongoing basis.  In other words, you can have the same balanced investment portfolio you currently have, but with the substantial tax benefits not currently available to you now.  There are 3 time your money can be taxed, when you earn it, as it grows and when you consume your investment return.  An EOF is the only strategies available that removes the friction of taxation from all three of the events.  With a EOF you can putting your money to work before tax, have it grow tax free and when you consume the results of your investments you do so tax free.
 
Investment Lock up:
 
QOZ:
With a QOZ your investment is tied up for at least 10 years in order for you to receive it full tax advantage.
 
EOF:
An EOF allows you access to a all investment growth and a substantial amount of your principle after 12 months.
 
Investment Window:
 
QOZ:
To benefit from a QOZ you must make your investment within 180 days from the recognition of a Capital Gain transaction with one exception.  If you are a member of an LLC, a stockholder of a S-Cop or a partner of a General or Limited Partnership you may be able to take advantage of investing 180 days after the close of the tax year of the LLC, S-Corp or Partnership.
 
EOF:
To take full advantage of an EOF it must be set up prior to the closing of a Capital Gain transaction.
 
May a taxpayer invest more than the amount of Capital Gain:
 
QOZ:
You can make investment into a QOZ fund in addition to your Capital Gain, however you will not realize any tax benefits from that additional investment.
 
EOF:
An EOF allows almost unlimited investment above your deferred Capital Gain investment.
 
 
Asset Protection of your Investment:
 
QOZ:
Without complex planning your investment in a QOZ Fund is quite accessible to one’s creditors.
 
EOF:
The very nature of an EOF is one that prevents any creditor, even governments, from gaining access to the assets you hold in an EOF without your approval and at your direction.