• Downloadable Course Book

Qualified Opportunity Zones—What Are the Rules? (Electronic Download)

Available: In Stock
Price: $69.00
Item Code: 10715-DL


This manual covers the tax benefits available to investors in qualified opportunity funds and the surprisingly complicated rules for forming and operating one of these funds. It also contains an in-depth analysis of the rules that must be satisfied in order for investors to get qualified opportunity zone tax benefits as well as information on how these funds must be structured.

This resource will be of interest to:

  • anyone interested in or advising investors interested in qualified opportunity funds
  • developers and owners of real estate in a qualified opportunity zone
  • operators of businesses in a qualified opportunity zone

Gain in-depth information on the rules that must be satisfied for investors to get QOZ tax benefits as well as the structuring necessary for qualified opportunity funds.


Table of Contents

Qualified Opportunity Zones (“QOZ”)

  • Benefits of Investing Gains into Opportunity Funds
  • Who and What
  • Partnerships, Partners and Roll-Over Gain
  • Gain Eligible to be Deferred
  • Qualified Investment in a QOF
  • Deferral
  • How Much Deferral?
  • Electing Deferral
  • Deferral Observations
  • Another Benefit: Gain Elimination
  • Establishing and Qualifying a QOF
  • What is a QOF?
  • QOZ Property
  • QOZ Stock/QOZ Partnership Interest
  • QOZ Business Property
  • Structuring QOF Investments
  • QOF Investments
  • QOZ Business Conducted by QOF Subsidiary
  • QOF Directly Conducts Business vs. QOF Conducts Business Through Subsidiary
  • Qualified Opportunity Zone Business
  • Reasonable Working Capital
  • Churning
  • Combining Tax Credits with QOZs - Increasing Yield
  • Drafting Considerations
  • Sample Statement of Purpose
  • QOZ Business – Drafting Considerations
  • QOF Drafting Considerations
  • QOZB - Additional Drafting Considerations
  • Additional Considerations
  • Locating Designated
  • QOZs QOF Guidance – More to Come?
  • Hypotheticals

Section 2
I. Tax Benefits to Investor
A. Roll over of Gain

1. Eligible Taxpayers
2. Capital Gain
3. 180-Day Period
4. Investments Eligible for QOZ Benefits
5. Exclusion of Part of Roll Over Gain
6. December 31, 2026 or Earlier Disposition Gain Recognition
7. 10-Year Gain Elimination
8. Examples
9. Mixed Funds
10. Observations


A. In General
B. 90% Test
C. QOZ Property
D. Failure to Satisfy the 90% Test

III. QOZ Business Property (QOBP)

A. Definition
B. Comparison to Rules Applicable to a Qualified Opportunity Zones Business (QOZB).

IV. QOZ Stock, QOZ Partnership Interest and QOZB

A. Definition of QOZ Stock and QOZ Partnership Interest
B. Definition of QOZB

V. Required Guidance

VI. Observations

A. Two Tier Structures
B. Different Rules Applicable to QOF and QOZB
C. Single Asset vs. Multi-Asset QOFs
D. Investing in a Disregarded Entity


Appendix A: IRC Sections 267(b) and 707(b)

I. Related Party Rules Under Code §§ 267(b) and 707(b)(1)

A. Members of a Family
B. Corporations and Their Owners
C. Corporations
D. Partnerships and Partners
E. Fiduciaries, Trusts, and Beneficiaries
F. Constructive Ownership Rules of Code § 267(c)

Appendix B: Two Page Summary

Section 3
QOZ Hypotheticals

Attachment A: Code Section 1400Z-2
Attachment B: October 2018 Proposed Regulations
Attachment C: Real Estate Round Table Comment Letter
Attachment D: New York State Bar Association Comment Letter
Attachment E: ABA Tax Section Comment Letter

Published: 1/28/2019
Pages: 266