OPPORTUNITY ZONES WWW.HARRIS-BAY.COM ANTON BAYER

WARREN BUFFETT “BIG Opportunities come infrequently. when it rains gold put out the bucket, not the thimble” Slide / 01 www.harris-bay.com

WHAT ARE OPPORTUNITY ZONES? 2017 JOBS ACT & TAX CUT, The Opportunity Zone program was created to revitalize economically distressed communities using private investments rather than taxpayer dollars. To stimulate private participation in the Opportunity Zone program, taxpayers who invest in Qualified Opportunity Zones are eligible for SPECIAL TAX incentives WHAT ARE OPPORTUNITY ZONES? Slide / 02

WHAT ARE THE BENEFITS NO TAXES, (kinda) TAX DEFERRAL: until 12/31/2026 REDUCED TAXES: 10% after 5 years. 5% after 7 years 15% total reduction PERMENENT EXCLUSION OF FUTURE TAXES: If held for more than 10 years no future capital gains tax. Slide / 03 www.yourwebsite.com

WHERE ARE OZONES? 8700+ CENSUS TRACTS, spread across all 50 states, and all of Puerto Rico.* * (Current legislation proposal to make disaster areas of wildfire and hurricanes QOZ) Slide / 04 www.yourwebsite.com

HOW TO INVEST IN OPPORTUNITY ZONES THROUGH QUALIFIED OPPORTUNITY ZONE FUNDS (QOF), ANY capital gains (real estate, stocks, crypto, business) invest as equity into a QOFs then 90% of investments have to be located within a Qualified Opportunity Zone (QOZ). WITHIN 180 DAYS OF SALE INVEST INTO QOF An individual or single member LLC will have 180 days from sale, partnership has 180 days or 180 days from end of taxable year. 30 months to substantially improve As an economic development legislation it requires active improvement to qualify. (Physical property - land value = Substantial improvement amount) Slide / 05 www.harris-bay.com

REVITILIZE COMMUNITIES: As an economic incentive to invest into low income areas you receive TAX INCENTIVES to improve investment returns ON ALL ASSETS NO CAPITAL GAIN TAX. Unlike 1031 Exchange proceeds can be used from ANY ASSET with unrealized gains (stocks, business, real estate). WHY OZONE INVEST Slide / 06 www.harris-bay.com

CENTER PICTURE SLIDE Sign Far far away, behind the word mountains, far from the countries Vokalia and Consonantia, there live the blind texts. Sign *Assumptions provided by Novogradac & Co Slide / 07 www.harris-bay.com

SECRET SAUCE: INVESTMENT STRATEGY URBAN CORE OF SECONDARY & TERITARY MARKETS Opportunity Zones were based on 2010 census data tract information. Nearly all markets in the urban core of secondary and tertiary cities has seen significant changes in the last 8+ years. TOP MARKETS TO WATCH: Portland, OR 6) Asheville, NCSan Antonio, TX 7) Detroit, MI Sacramento, CA 8) Houston, TX Kansas City, MO 9) Milwaukee, WI Cincinnati, OH 10) Atlanta, GA Slide / 08 www.yourwebsite.com

BEST ASSETS FOR OZ OFFICE MULTI-FAMILY HOSPITALITY VALUE ADD & NEW CONSTRUCTION, No secret here, the urban core is vastly under supplied with affordable housing + add OZ benefits MULTI-FAMILY SECTION 179 AND COST SEGREGATION Cashflow income that can be offset with deductions, cost segregation depreciation creates favorable low tax producing asset. HOSPITALITY VALUE-ADD, Modernization of existing building provide distinct cost advantage vs replacement and additional benefits of HTC and NMTC. OFFICE

TEXT OZONE to 80-123 Don’t wait, for the right opportunity: create it. - George Bernard Shaw For a copy of this presentation, and other opportunity zone information, deals, research and documents. Slide / 10 www.harris-bay.com.com

THANK YOU ANTON BAYER ANTON@HARRIS-BAY.COM (916) 520-6424 Slide / 11 www.harris-bay.com