Qualified Opportunity Funds: Eligibility Requirements, Recent Regulations, Form 8996 Self-Certification

Note: CLE credit is not offered on this program

A live 110-minute CPE webinar with interactive Q&A

Thursday, June 6, 2019

1:00pm-2:50pm EDT, 10:00am-11:50am PDT

or call 1-800-926-7926

This webinar will address the latest compliance challenges investors and tax practitioners are facing with qualified opportunity funds (QOFs). Existing guidance under Sections 1400Z-1 and 1400Z-2, Revenue Ruling 2018-29 and the regulations released Oct. 19, 2018, explain the rules, answer some questions and create new ones. The panelists will provide guidance on the best procedures to fully utilize and preserve the tax incentives offered by investing in Opportunity Zones (OZs). They will cover ensuring your QOF is qualified, meeting the thresholds to avoid penalties, and key structuring and operational guidance which we expect in the second set of proposed regulations.


There are more than 8,700 designated OZs located in all 50 states and several U.S. territories. Investing in OZs generates basis step-ups along the way. Initially, the deferred gain is invested in a QOF with a basis of zero. If a QOF interest is held for five years, the basis in the QOF interest is increased to 10% of the gain postponed; if a QOF interest is held for seven years, this increases to 15%. Since all deferred gains are taxed Dec. 31, 2026, investors must act this year to get the 15% step-up.

Additionally, a QOF interest held for 10 years receives a basis step-up equal to fair market value, so no capital gains tax applies when an investor sells its QOF interest after 10 years. Taxpayers and tax practitioners alike are excited that there is a vehicle that eliminates capital gains on appreciation.

Amid all the excitement are compliance and structuring issues. Gain proceeds must be invested in a QOF and cannot be used to acquire property in an OZ directly. Sin businesses such as a golf course, racetrack or country club fail to qualify as eligible businesses. Additionally, a QOF must be a corporation or partnership, 90% of a QOF's assets must be invested in QOZ property, its use must begin with this business, and there are related party rules applicable to the acquisition of the property.

Listen as our panel of experts breaks down the complexities of the newly enacted SubChapter Z, provides clarification of recent regulations, and recommendations for implementing a QOF as we anticipate a second set of regulations.



  1. Tax incentives
  2. Qualifying a QOF, steps and thresholds
  3. Issues clarified by regulations and Ruling 2018-29
  4. Unanswered questions
  5. Practical guidance


The panel will review these and other important issues:

  • Tax incentives offered by investing in OZs
  • QOF qualification requirements
  • Self-certifying a QOF
  • Interpreting recent guidance
  • Unsettled issues


Bailey, Henry
Henry A. Bailey, Jr.

Berman Fink Van Horn

Mr. Bailey represents buyers and sellers with an eye on bringing prompt and effective resolutions for his clients with...  |  Read More

Millett, Jessica
Jessica Millett

Duval & Stachenfeld

Ms. Millett is co-chair of Duval & Stachenfeld’s Tax Practice Group. She has particular expertise in U.S. tax...  |  Read More

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