Qualified Opportunity Fund Partnership Investments Under 1400Z: Special Timing and Deferral Opportunities
Entity vs. Partner Deferral Election, Allocation Rules, Basis Step-Up
Recording of a 110-minute CPE webinar with Q&A
This course will provide tax advisers with a practical guide to the qualified opportunity zone (QOZ) tax incentives made available under Section 1400Z as they impact partnerships. The panel will discuss the mechanics of Section 1400Z and the proposed regulations issued in October 2018, as well as address the special rules unique to partnership investments in qualified opportunity funds (QOF). They will discuss how to qualify for tax benefits by investing in a QOF, the requirements to create and maintain QOFs and QOZ businesses, and critical areas of the law that remain uncertain.
- Section 1400Z-2 opportunity zone provisions
- Processes and criteria designating QOZs
- Opportunity zone funds as the new class of investment vehicles and interests they can hold
- Specific tax incentives provided for in QOF investments
- Election flexibility for partnerships and other PTEs investing in QOFs
- Election at the entity level to defer
- Entity recognition of gain with election pushed down to partner/members
- Holding period and special rules when individual partners elect deferral
- Contrast QOF incentives with 1031 election results in a partnership context
- Filing and documentation requirements
The panel will review these and other key issues:
- What are QOZs and the eligibility requirements under IRC 1400Z?
- What are QOFs and QOZ businesses?
- How can taxpayers ensure the deferral or reduction of capital gains and the appreciation exclusion?
- Recent IRS guidance on gain deferral and the "substantially all" requirement imposed on QOZ businesses
- Specific IRS guidance on advantageous treatment of partnerships and other PTEs investing in QOFs
William C. Lentine
Warner Norcross + Judd
Mr. Lentine is experienced in corporate tax matters, partnership taxation, mergers & acquisitions and estate... | Read More
Mr. Lentine is experienced in corporate tax matters, partnership taxation, mergers & acquisitions and estate planning for executives and high net worth individuals. He has experience in corporate governance issues including choice of entity considerations, shareholder/director meetings, Dodd-Frank Act compliance and other general corporate law matters, as well as with public and private mergers and acquisitions and assisting foreign companies in establishing U.S. operations.Close
Daren R. Shaver
Mr. Shaver is a transactional tax attorney, helping clients achieve their objectives in a practical and tax-efficient... | Read More
Mr. Shaver is a transactional tax attorney, helping clients achieve their objectives in a practical and tax-efficient manner. He has experience with matters spanning areas such as fund formation, tax credits, real estate, venture capital, partnerships, and tax exempt entities--including federal and state income tax matters. Prior to joining the firm, Mr. Shaver was affiliated with several leading international and regional law firms.Close
Dave Sobochan, CPA
Cohen & Company
Mr. Sobochan focuses on tax planning, reporting and minimization strategies, including entity, retirement and... | Read More
Mr. Sobochan focuses on tax planning, reporting and minimization strategies, including entity, retirement and succession planning; state and local tax issues; and credits and incentives. A member of the firm’s Real Estate & Construction Group and integral in the national Tax Credits and Incentives Group, Mr. Sobochan also specializes in deal analysis, new markets tax credits, historic tax credits, renewable energy credits and incentives, and general business consulting for real estate clients.Close