How much of a QOF’s balance can be invested into Non-Qualified Opportunity Zone Business Property that include crypto?
A small portion. Qualified Opportunity Funds (QOF) can only hold 10%, and Qualified Opportunity Zone Business Funds (QOZBs) can only hold 5%, and you have to be wary of the anti-abuse rules in the regulations. I am not an advocate of Opportunity Zone vehicles holding crypto. I think entities doing that are really tempting fate, even if they're technically in compliance with the rules.
Up to 10% of the assets held by a Qualified Opportunity Fund (QOF) can be non-qualified opportunity zone property, including cryptocurrency. This means that if all of a QOF's other assets are qualified opportunity zone property, up to 10% of its total assets can be cryptocurrency.
DISCLAIMER:the information found on this website is intended to be general information; it is not legal or financial advice. Specific legal or financial advice can only be given by a licensed professional with full knowledge of all the facts and circumstances of your particular situation. You should seek consultation with legal and financial experts prior to participating in any aspect relating to Opportunity Zones. Posting a question on this website does not create an attorney-client relationship. All questions you post will be available to the public; do not include confidential information in your question.