Qualified Opportunity Fund & Opportunity Zones?

[Thomas Jackson]

Anyone have insight into these Opportunity Zones and Qualified Opportunity Funds? I’m more specifically interested in the Akron, OH market but I’m guessing all of the “Opportunity Zones” across the country provide the same tax benefits and any info will be appreciated.

[Eamonn McElroy]

@Kendra Ellis

There are many factors under case law to help determine what is an investment and thus capital gain, and what is property held for sale and thus ordinary income potentially subject to SE taxes.

The preeminent factors are intent at the time of acquisition and intent while holding it.

If you acquired these properties with the goal of renovating them and flipping them for a profit, it would be very hard to argue capital gains.  Generally they would be ordinary income and would also be subject to SE taxes if you were involved in management and/or the day-to-day.

Looks like you've done quite a few flips in the past....Hope your tax pro reported them correctly...