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How can an investor invest directly into an Opportunity Zone business to qualify for associated tax incentives?


Answers
  • Maria De Los Angeles Rivera
    August 12, 2022

    In order to benefit from the OZ incentives, the investment must be done through a QOF.

  • Matthew Rappaport
    August 10, 2022

    This is not possible. Investment must be through a QOF, period. Direct investment is not qualified.

  • Joseph Luna
    August 10, 2022

    They can’t. They will need to invest directly into a Qualified Opportunity Fund and meet the applicable investor requirements.

  • Marko Belej
    August 09, 2022

    An investor cannot qualify for opportunity zone (OZ) benefits by simply investing directly into a qualified opportunity zone business (QOZB). Instead, the investor must invest in a qualified opportunity fund (QOF), which would then invest into the QOZB. A QOF for this purpose can be as simple as an LLC (i) in which the investor and one other member invest (even if it's his/her spouse and even if it's for just a 1% interest) and (ii) that has a statement in its organization documents saying that it was formed for the purpose of the investing in qualified opportunity zone property and describing the QOZB.

  • David LeGrand
    August 09, 2022

    There are money OP Zone funds designed to produce the desired tax benefits. Just do an internet search on OP Zone funds.

  • Brett Siglin
    August 09, 2022

    An investor with ripe capital gains can invest in any QOF.

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