Qualified Opportunity Zones: A New Real Estate Investment Structure (Update)

As part of the 2017 Tax Cuts and Jobs Act, Congress enacted new Sections 1400Z-1 and 1400Z-2, which created qualified opportunity zones (QOZs). These are designated low-income census tracts. Through a qualified opportunity fund (a QOF), investors can reinvest gain from the sale of assets (including non-real estate assets) into real estate or other property in QOZ and defer tax on the gain and, potentially, be exempt from tax on additional appreciation. 

Since this is an evolving area, new rules have been announced since the TCJA first went into effect which clarify the practical impact of QOZ's and investor obligations. This program will cover the tax benefits and requirements of investing in a QOF. Additionally, the program will discuss QOF structuring considerations and address areas of uncertainty, as well as any regulations or other guidance that are released on an ongoing basis.

Learning Objectives:

1. Review the definitions of QOZ and requirements for a QOF
2. Discuss areas of uncertainty in these investment structures, recent rule changes, and what attorneys can expect in the future
3. Advise clients on the benefits and risks of real estate investment in these zones