Opportunity Zone Investing Process

[Neal O.]

I am currently in contract on a duplex in a designated Opportunity Zone. In order to take advantage of the tax benefits, what is the process exactly? Do I have to "register" the investment as such somewhere? Or do I just notify my CPA, and then they handle everything at the time of filing my return?

[Cooper Marcus]

The process is quite involved - notifying your CPA, or simply registering the investment, will certainly NOT work.

You need to form a Qualified Opportunity Zone Fund (QOZF or QOF), invest cash into that fund from capital gains, then the fund would acquire, substantially improve, and operate the duplex - and there are WAY more details. 

I think the first big question for you to consider in all this (and there are LOTS of big questions) is the source of cash you are using to acquire the duplex - if it is not capital gains, from a sale of an appreciated asset that occurred recently (<180 days, I think), then there is no reason for you to consider OZ investing. If it is capital gains, you need to quickly educate yourself on how OZ investing works - some quick Googling will get you going!