Any one have a good reference for use of the opportunity zone tax breaks? Have a park under contract that just falls into the zone so looking for info. Thanks!
I’d start with the IRS regs or as close to them as you can get.
OMG. I just opened the link and almost fell asleep. Thanks Brandon…wish me luck.
There are a lot of nuances to the rules but one in particular to keep in mind is that you will need to invest at least 100% of the amount allocated to improvements to the property during the hold period.
For example - You purchase a park for $100,000 - $50,000 allocated to land and $50,000 allocated to improvements. You will need to invest at least $50,000 additional into the park to have it qualify for the tax benefits. There are some details to this such as how long you have to do it but your best bet is to check with an accountant.
Complicated topic and the new rage. Where’s the park? Are you open to assignment?
I have OZ investors lined up.
I definitely agree with Augustine. This is a very complicated topic that you will need to engage accountants and lawyers to make sure you are in the clear. The market for QOZ’s are rapidly evolving with the release of the 2nd tranche of regs from the IRS a few weeks ago. We are developing self-storage in QOZ’s and have dedicated a lot of time and legal/accounting fees. Feel free to reach out and I can give you the quick download.
The park is in Virginia. Actually just closed on it last week. Wasn’t really looking to sell right away but would never not listen. Send me a pm.
Congrats.
I’m looking in the midwest.