Opportunity Zone and 1031 Exchange

[Stacie Olh]

I'm looking to do a 1031 exchange on my owner occupied duplex in Los Angeles, where the upper unit was my personal residence for more than three years and the lower unit has been used as a long term and short term rental. Purchase price was $500k, improvements were $300k, and list price will be $2MM. I'll apply the $500k capital gains exemption to the personal residence. For the lower rental unit, I'm interested in a 1031 exchange property in a designated opportunity zone (California's: http://dof.ca.gov/Forecasting/Demographics/opportunity_zones/), which provides for improved basis with cap gains payable on earnings from Opportunity Zone investment after 10 years? Anyone foresee issues? Treasury Dept and IRS have provided minimal guidance and indicate that Opportunity Zone investments are self-certified (for now). I've consulted a couple of accountants and qualified intermediary and they aren't too familiar with Opportunity Zones.