Qualified Opportunity Zone Fund Consulting
Investing in an opportunity zone through a Qualified Opportunity Fund (QOF) can offer significant tax benefits. We can provide guidance and solutions to take advantage of this opportunity.
The Opportunity Zone Incentives Program was created to encourage investments in economically-distressed communities. The opportunity zone tax incentives provide investors the opportunity to defer, or even eliminate, capital gains taxes by investing in a Qualified Opportunity Zone.
There are several tax benefits to be gained from making a qualified investment in an opportunity zone through a QOF, including:
- Deferral of original qualified gain until 2026
- A potential 15% basis step-up against that deferred gain (effectively reducing the deferred gain amount) if the investment was made by the end of 2019 and is held for 7 years
- For investments made in 2020 and 2021 and held for 5 years, the potential basis step-up reducing the deferred gain amount is 10%
- The ability to exit an investment in a QOF (via an equity or asset sale) after 10 years without paying any tax on the investment’s appreciation
Understanding how to take advantage of the Opportunity Zone Incentives Program can be overwhelming and confusing.
Our team consists of professionals with expertise in community development, construction, real estate, finance, and tax. We provide guidance on how to form and operate a Qualified Opportunity Fund, how to verify all requirements are met, and how to take advantage of the significant tax benefits associated with investing in a Qualified Opportunity Zone.
Where Can Qualified Opportunity Zone Communities be Found?
Understanding the ins and outs of the Opportunity Zone Incentives Program can be challenging.
Qualified Opportunity Zone Fund Consulting Leadership
Adam SweetJ.D., LL.M.