All Forum Posts by: Angela Rhoton

Thanks for feedback. 

I have other capital gains that are not associated with the OZ property that would be invested so I believe that meets requirement one.

With regard to purchasing after 12/31/2017. Doesn't the QOF have to acquire the property after that date? The QOF would be a new LLC partnership not just me that would acquire the property and then make substantial improvements to meet that requirement before put to use. My question becomes the related party issue. https://nesfinancial.com/opportunity-zones-q-and-a-previously-held-property

This is a property I intend to renovate and hold anyway and it seems unfortunate that I am not able to take advantage of OZ benefits.

Interesting, other articles seem to imply you can invest in your own property if it is substantially improved and the fund (which would be a new LLC established for the purpose of investing in OZ property) acquires the property.

https://www.investmentlawblog.com/2018/10/09/how-real-estate-developers-can-use-opportunity-zone-funds-to-finance-new-real-estate-projects/

https://www.claconnect.com/resources/articles/2018/opportunity-zones-develop-and-invest-capital-gain-in-your-business

I have been doing my own research on this subject and haven't found the clear answer or at least one I like. I have a call into a friend who is a Tax Atty/CPA as well but thought I would throw it out to the community.  

I have a rental property that is in an Opportunity Zone. All of the houses around my property have been torn down and new construction going up and I am considering the same. I know the new construction would meet the 'substantial improvement' criteria of investing in an opportunity zone. I have found a few comments that the Opportunity Zone Fund I set up (LLC) could would have to purchase the property from me and then I can only have a 20% stake in the OZF. Does anyone else have more clarity on that? It seems the govt doesn't want the me to benefit from further investment in the area but only others. Would love any thoughts on the subject.

Thanks

Angela