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Updated over 4 years ago,
Funding Properties (personal vs com) while maintaining OZ status?
I created an LLC in 2019 to invest in an opportunity zone, and now those properties are getting ready to close. I need to get lending for these properties, but as I understand the OZ qualifications, the properties need to stay in the name of the LLC. I thought I might be able to fund using personal loans (better rates, 30-yr fixed, etc.) and quit claim back into the LLC at closing. However, I wonder if this would disqualify these properties as they need to remain in the LLC that was setup as the designated OZF.
Does anyone have experience with this or understand the tax implications? I've reached out to my CPA and am waiting to hear back, but when filing taxes with him for 2019, he had to "learn" the OZF part of my deferred capital gains, etc. as it was new to him... Thought I would reach out here on BP while I wait!