Tools to Understand QOF Reporting Requirements
The ability to invest in Qualified Opportunity Zone (‘QOZs”) has been in place for more than 18 months, but guidance from the IRS about how the program works has been slow in coming. With the release in April of the second round of detailed regulations, many questions have now been answered and well-informed investors are finally positioned to take advantage of the significant tax benefits offered by the new law.
Whether you are forming your own Qualified Opportunity Fund (“QOF”) or investing in a QOF run by others, this on-demand webinar, presented by Withum’s Brian Lovett and Chamberlain Hrdlicka’s Philip Karter, will provide you the tools to understand the reporting requirements imposed on QOFs and the various safe-harbors on which qualified investors can rely.
- Understand the tax reporting mechanisms for reporting deferred capital gains
- Learn the nuts and bolts requirements to satisfy the semi-annual qualification test
- Identify the distinctions between QOF contributions of cash versus contributions of property and the potential to avoid the related-party problem
- Learn about the treatment of equity interests received in QOFs in exchange for services
- Explore the use of debt to leverage opportunity zone investments
- Consider the effect of depreciation recapture on the exclusion of capital gains.
- Learn what constitutes a qualifying business in an Opportunity Zone
- Explore how states might deal with federal opportunity zone tax benefits
- Be sensitized to the important provisions to look out for in the Operating Agreement for a QOF partnership/LLC.