LLC as Opportunity Fund - Pros and Cons ?

[Thomas Hatley]

Hi All,

Back in February of this year, I purchased a rental home in an Opportunity Zone. I had been reading about Opportunity Zones at the time and understood that they would drive investment into the area and create a good opportunity. I didn't use any funds from a previous investment, but I deed the property into a sole proprietor LLC, specifically set up for this property. I understand from reading the FAQ on the IRS's website that " A LLC that chooses to be treated either as a partnership or corporation for federal tax purposes can organize as a Qualified Opportunity Fund ", however, I'm wondering if I should go forward with that filing strategy?

I'd appreciate any insight here and perhaps pros/cons of being treated either as a partnership or corporation for federal taxes in my scenario.

Thanks!

 

[Basit Siddiqi]

@Thomas Hatley

From a quicklook, it seems a lot needs to be done before you can extract the benefits of the qualified opportunity zones.

This is something you want to plan beforehand and not after the fact.