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How and when is it most financially sound to move my business into an OZ?

For tax reasons, is there a certain month I should make the move? What is legally part of this process?

  • Erik Kodesch
    December 18, 2019

    No OZ issue for the move. Tax treatment turns on when you invest in the Qualified Opportunity Fund.

  • Guy Nicio
    December 17, 2019

    This is a highly involved discussion. You can't simply move your business into an OZ in order to reap the tax benefits. There is much involved, including the need to have a qualified OZ Fund, not just a business. There must be proceeds from capital gain transactions invested into a fund. It seems to me that your motivation to move would be more based on wanting to be a target for an equity position by an OZ fund. You should definitely consult/engage a qualified advisor to walk you through the issues.

  • Peter McNeil
    December 17, 2019

    The sooner the better. You want to get the 10-year clock going so that future capital gains can be tax-free. Also, remember on capital gains invested In the OZ business create an interest eligible for future tax-free treatment.


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