Hello everyone,
New paper talks about tax benefits about opportunity zone. Clients walk in with newspaper ask us about.
Yes, there are some benefits:
Temporary gain deferral election.
Recognition of deferred gain.
Permanent gain exclusion election.
But does the tax payer have to invested in QO Funds to enjoy the tax benefits?
I read this “A QO Fund is an investment vehicle organized as a corporation or a partnership for the purpose of investing in a QO Zone. The QO Fund can't invest in another QO Fund and has to hold at least 90% of its assets in QO Zone property (i.e., any QO Zone stock, any QO Zone partnership interest, and any QO Zone business property). A QO Zone property has to meet many requirements, including that substantially all of the entity's business property is used in a QO Zone. A penalty can apply to the QO Fund if it fails to meet the 90% requirement. “
Does that mean taxpayers have existing business in the QO zone but without QO fund cannot take any tax benefits?
Thank you,