Taxpayer, an individual, has sold real estate used in a trade or business on April 1, 2019 to an unrelated person and a capital gain was created. Also, a C corporation he owned, sold equipment used in the trade or business. The sales price from the real estate sale will be paid to him at a rate of $3,000 per month for a few years followed by a lump sum payment. Taxpayer also has other financial resources.
Taxpayer has found a trade or business opportunity just down the road and wishes to invest in the business, a restaurant. The facility is in an Opportunity Zone, was operated as a restaurant for 60+ years, but was not operated at all in 2019.
It seems that the taxpayer (and his wife) can form a partnership, or an LLC taxed as a partnership; invest an amount equal to his gain from the April 1 sale, in that partnership; and, by October 1; have the partnership buy the restaurant AND within 30 months make improvements to the building and equipment equal to the cost of the building. The partnership would self-certify as a QOF. Perhaps, for legal protection the partnership may own two LLC's, one that owns the building and one that operates the restaurant.
The taxpayer in his capacity as a partner, would manage the restaurant.
Am I missing some aspect of the law that would deny the taxpayer the deferral of the recognition his April 1 gain?