January 8, 2020
In March 2019, we released the article How to Seize the Opportunity of Opportunity Zones. In it, we outlined the exciting opportunities for new investment options in low-income areas including the tax benefits of deferring recognition of capital gains. We received so much positive feedback and interest that we decided to give you a follow-up.
First, a quick refresher: An opportunity zone is defined by the IRS as an economically distressed community where new investments may be eligible for preferential tax treatment. Projects in the zone must be related to real estate, infrastructure, equipment, or business.
“We’re seeing more funds being created around our area now that the program has been in effect for two years. A lot of brokerage firms have created their own funds, while others are self-certified and started by individuals,” says Principal and CPA Nate Miller. “We’re working with clients to see if it’s in their best interest to join an existing fund or to start their own.”
Nate and his team can help you understand if you currently meet all the requirements to start a Qualified Opportunity Fund, as well as advise you on what it takes to stay in compliance. “You need to make sure you keep within the IRS parameters of maintaining the fund, so your eligibility doesn’t change, creating a problem within the fund,” Nate explains. “If we determine that it makes sense for you to start a fund, we can work with you and your attorney to set it up, and we will ensure all the reporting is done correctly.”
“If we determine that creating a fund isn’t the right choice for you, we can connect you with a fund that would allow you to reap the benefits of deferring your gains and only be involved as an investor. Again, we will work with you to ensure that all the reporting for your filings is accurate,” says Nate.
You can count us to help you determine which is the best option for you and to give you a better understanding of the opportunity in opportunity zones. Contact Nate Miller, CPA at firstname.lastname@example.org or 209-527-4220 to learn more.