Bought an apartment building in Opportunity Zone

[Kimmy G.]

Hi everyone,

My friend and I bought an apartment building in 2018, and it turned out to be located in an opportunity zone. Are we qualified for the tax benefits for Opportunity Zone, for example the step-up in basis if we sell it after 10 years? And if so, how do we tell IRS that we want to make it qualify?

Here are some details. We bought it using an LLC (the LLC's sole purpose is to hold this one apartment building). It was bought with a commercial loan with 25% down payment. The down payment was from our savings (not capital gains from other investments). There were small repairs done but nothing substantial. And 90% of the current tenants are inherited from the seller.

Thank you so much for your answers!

An additional question is: I'm buying an other apartment building in an opportunity zone using another LLC (which also only holds this one building), but this LLC is a single-member LLC (I'm the only member). Would this still be qualified for Opportunity Zone investment? Thanks!