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Updated about 1 year ago,

User Stats

19
Posts
0
Votes
Chase Banta
  • Portland, OR
0
Votes |
19
Posts

How to structure sponsor promote as Capital Gains?

Chase Banta
  • Portland, OR
Posted

Here's the structure in our current operating agreement:

Investors get a 6% pref and everything beyond is split 50/50 between investors and sponsor (aside: split is very favorable to sponsor because sponsor brought 75% of capital and personally guaranteed the loan).

Since all original capital has been returned to investors, sale proceeds will be split 50/50 between investors and sponsor.

What I'd like is for the promote to be considered capital gains so it can be invested tax deferred into an Opportunity Zone Fund.

How can I achieve this?

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