Opportunity Zones - I own land in an OZ and had no idea.

[Charlie Moore]

I recently sold some rentals and came into some money. I also recently bought some land in an opportunity zone. I had no idea that it was an opportunity zone! I was really intrigued by the episode last week and have listened to it a few times but this still feels a little above my pay grade as I'm only a year into investing. I was going to build and sell but now I obviously want to keep, if I can swing it! How do I find a tax strategist in my area (or do I just use my CPA) to dot all my i's and cross all my t's - if I am going to keep and not sell I wanna make sure I am doing this the right way and that I do indeed qualify. If someone feels comfortable answering some follow-up questions I had from the episode I would be greatly appreciative! 

[Austin Wei]

Quote from @Charlie Moore:

I recently sold some rentals and came into some money. I also recently bought some land in an opportunity zone. I had no idea that it was an opportunity zone! I was really intrigued by the episode last week and have listened to it a few times but this still feels a little above my pay grade as I'm only a year into investing. I was going to build and sell but now I obviously want to keep, if I can swing it! How do I find a tax strategist in my area (or do I just use my CPA) to dot all my i's and cross all my t's - if I am going to keep and not sell I wanna make sure I am doing this the right way and that I do indeed qualify. If someone feels comfortable answering some follow-up questions I had from the episode I would be greatly appreciative! 

Sorry to be the bearer of bad news, but you're already disqualified. You need to 

1. Set up the Qualified Opportunity Fund (QOF)

2. Deploy the capital gains realized within the 180 day window into the QOF.

3. Have the QOF acquire the land.

I've greatly simplified for brevity. But, since you already own the land you're disqualified.

[Chris Jeub]

Quote from @Charlie Moore:

I was really intrigued by the episode last week and have listened to it a few times but this still feels a little above my pay grade as I'm only a year into investing.

I thought the same thing. Intrigued, but way over my head. I wonder if you could sell/resell with a partner to gain the advantage of the tax benefits? You might tap into a lawyer's perspective on this one. Hope the best for you Charlie!

[Austin Wei]

Quote from @Chris Jeub:

Quote from @Charlie Moore:

I was really intrigued by the episode last week and have listened to it a few times but this still feels a little above my pay grade as I'm only a year into investing.

I thought the same thing. Intrigued, but way over my head. I wonder if you could sell/resell with a partner to gain the advantage of the tax benefits? You might tap into a lawyer's perspective on this one. Hope the best for you Charlie!

I think that's possible if you have an arm's length transaction and sold at fair market value.

[Charlie Moore]

Quote from @Austin Wei:

Quote from @Charlie Moore:

I recently sold some rentals and came into some money. I also recently bought some land in an opportunity zone. I had no idea that it was an opportunity zone! I was really intrigued by the episode last week and have listened to it a few times but this still feels a little above my pay grade as I'm only a year into investing. I was going to build and sell but now I obviously want to keep, if I can swing it! How do I find a tax strategist in my area (or do I just use my CPA) to dot all my i's and cross all my t's - if I am going to keep and not sell I wanna make sure I am doing this the right way and that I do indeed qualify. If someone feels comfortable answering some follow-up questions I had from the episode I would be greatly appreciative! 

Sorry to be the bearer of bad news, but you're already disqualified. You need to 

1. Set up the Qualified Opportunity Fund (QOF)

2. Deploy the capital gains realized within the 180 day window into the QOF.

3. Have the QOF acquire the land.

I've greatly simplified for brevity. But, since you already own the land you're disqualified.

[Austin Wei]

Source link: https://ozinvested.com/investment-structure-1

"Qualified Opportunity Fund must be an investment vehicle organized as a partnership, LLC (with 2+ members), S Corporation, or C Corporation for tax purposes."

My understanding is that you can set up an LLC with 2+ members so that it is taxed as a partnership, or you can set up a single-member LLC taxed as S-Corp or C-Corp. Verify with a CPA

It sounds like you have most taken most of the correct steps, but in the wrong sequence. Consult with your CPA to see if you can still qualify.

[David Sillaman]

OZToolkit.com can help teach you Opportunity Zones. Joe with OZInvested.com is one of the creators of the Toolkit.