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Filling Out Tax Form

Our Services

Our firm specializes in helping clients with their tax planning and compliance needs for
their investments in Opportunity Zones.
 
Whether you are thinking about deferring capital gains into an Opportunity Zone, or if you've already started the journey, we can help you.

1 

Major Needs

  • Formation and compliance for Qualified Opportunity Funds ("QOFs") and Qualified Opportunity Zone Businesses ("QOZBs")

  • Proper reporting of tax deferral elections for OZ investments

  • Advanced tax strategy to leverage the benefits of depreciation within an OZ investment structure

  • Multi-year tax planning to align OZ benefits with broader financial goals

  • IRS reporting requirements for OZ investments, including Forms 8996, 8997, 8949, and 4797

2

Detailed Items

  • Calculation of capital gain amount that is eligible for deferral via investment in a QOF (ordinary income and earned income are not eligible)

  • Coordination with state income tax rules (some states do not adopt or recognize the OZ tax benefits, e.g. California, Massachusetts)

  • Fully understanding the applicable timelines for investing your eligible capital gain (there are extended timelines for eligible capital gains reported to you on a Form K-1)

  • Coordination with IRS section 1031 rules, if necessary

  • Proper reporting (Forms 8949, 8997) to make a valid election to defer an eligible capital gain through an investment in a QOF

  • Setup of your self-direct OZ entity structure (e.g. partnership/flow-through entities are the most common and suggested)

  • Preparation of the annual form 8996 to self-certify your QOF and calculate the semi-annual OZ testing for compliance with the OZ program

  • Substantial improvement rules for purchased OZ assets that are not original use

  • Tracking your 10-year QOF investment timeline, multiple overlapping 31-month working capital safe harbor timelines, and the 30-month substantial improvement timelines

  • Assistance with your safe harbor working capital plan and regular updates to this plan

  • Tracking your outside basis for your personal return and carryover of suspended losses

  • Assistance with loans to/from your entities and assessing the required interest at AFR rates

  • Monitoring the 18-month repayment timelines for loans borrowed from the QOZB entity

  • Integration with passive loss rules and interest expense limitation rules at the personal return level

  • Using debt to obtain basis to deduct losses in the current tax year

  • Assistance with cost segregation rules and optimizing depreciation from your eligible assets in the OZ structure

  • Integration with your estate planning needs

  • Tax return preparation for your non-OZ entities and personal returns

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