Opportunity Zones do not have different classes.
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Are there classes of Opportunity Zones?
Do Opportunity Zones have different classes, such as Class C or B. What is the difference between these? Who establishes the classes? Am I mixing this up with some other class system?
Answers
There is not a class system under the OZ statute, but the attorneys/fund manager may create various classes of equity in the formation documents to give equity holders different rights other than if the entity is an S corporation (which I have yet to recommend).
There are no different classes of zones.
No classes. A zone has boundaries, of course, but no classes.
No classes of which I am aware.
For purposes of code section 1400 that defines Opportunity Zones, all zones are equal. There are no special classes. We are not playing horseshoes. Being close to an Opportunity Zone does not count. OZ assets and businesses must be inside of an Opportunity Zone. Being 10 feet outside the zone does not count.
No. All QOZs are the same in terms of how they are treated under the program. In terms of tax treatment, there is no difference between one QOZ and another.
With respect to census tracts designated as Qualified Opportunity Zones, there are no classes. The tax benefits for investors and the regulations which impact these investments are all the same regardless of the Opportunity Zone.
Not in terms of different tax rules. Different properties may be different level of classes for real estate purposes.
No. The federal legislation that created Opportunity Zones allows the state to determine the method, by which tracks were established but did not specify a requirement for a class system of Opportunity Zones.
No.
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