Opportunity Zone Investments

Qualified Opportunity Zone Tax Deferral Benefits

Incentives for investors to invest capital gain dollars into Qualified Opportunity Zones in order to benefit these economically distressed areas throughout the country.

Tax Deferrals and Gain Elimination –

  • The invested capital gain is deferred until the sooner of 2026 or the sale of the investment in the Qualified Opportunity Zone Fund (QOF defined below)
  • If the QOF is held for 5 years = 10% elimination of the original capital gain
  • If the QOF is held for 7 years = 15% elimination (total) of the original capital gain
  • If the QOF is held for 10 years = Tax free appreciation on the invested capital gain
  • Ohio is proposing a 10% tax credit on OH QOF investments in excess of $250k

Qualified Opportunity Zone Fund (QOF) –

  • Vehicle used to invest in a Qualified Opportunity Zone
  • Can be a partnership or C Corporation, including LLCs taxed as either type
  • Capital gains must be invested within 180-days from the capital gain event

Qualified Opportunity Zone Business Property (QOZ Business Property) –

  • Three potential investments – QOZ Partnership or Corporation or the QOF’s purchase of QOZ Business Property

Barnes Dennig can advise investors and developers with tax compliance and interpreting the new tax law to maximize gain deferral and private equity investment in OZ’s.

  • Timelines to meet critical required deadlines.
  • Advisory on tax regulations for Opportunity Zone investments.
  • Guidance on Qualifying OZ Property.
  • Guidance on language for partnership agreements, etc.
  • Tax return elections.

Opportunity Zone Experience

Our experienced opportunity zone team has hosted or been featured keynotes in events for The Port of Greater Cincinnati Development AuthorityConstruction Financial Management Association (CFMA), Rosselot Financial, and SkyBridge Capital. A free recording of our presentation, co-hosted by Stagnaro, Saba & Patterson can be accessed here.

If you would like our QOZ experts to speak on any topic to you or your target audience, please let us know here.

Barnes Dennig is a member of the Opportunity Investment Consortium of Indiana. Jennifer Wesselman is a Top 25 Influencer on the national Opportunity Zone Expo website.

 

You can learn more about Opportunity Zones on the Barnes Dennig blog: