Special Purpose Funds
Trivium’s special purpose funds are uniquely tailored to individual investor needs. Trivium’s special purpose funds include opportunity zone funds, entities designed to accept contributed property (in order to harvest appreciated value without an accompanying tax burden), and funds designed to facilitate 1031 exchanges.
Opportunity Zones
An Opportunity Zone (“OZ”) is a geographic area designated by the federal government in order to incentivize investment in the area. Investing into an OZ provides significant tax incentives if the invested capital consists of qualified gains contributed within 6 months of recognizing the gain.
If an investor places a qualified gain into an OZ investment, the tax due from the gain will be deferred and, if the investment is held for a minimum of 10 years, the internal gain on the investment is permanently excluded (no tax!).
Within the management umbrella of Fund I, Trivium has created Trivium Opportunity Zone Fund I in order to facilitate OZ investment.
Contributed Property
Contributing property that has appreciated above its basis into a partnership is a tax efficient way of harvesting a property’s value. Rather than liquidating a property and paying the tax associated with the gain, the property owners may benefit by contributing the property in exchange for partnership interests and benefit from diversification and ongoing cash flows.
1031 Exchange
A 1031 exchange is another tax efficient way to harvest the value of certain real property. In general, if proceeds from the sale of property is reinvested in like-kind property, the seller can avoid the tax burden associated with any gain.
Trivium can help facilitate a 1031 exchange in order to increase diversification and limit the ongoing liability of property ownership.
1031 exchange compliance can be tricky and exacting. Trivium’s experience with 1031 exchanges makes us a valuable partner to ensure they are done correctly.