Qualified Opportunity Zones: New Tax Incentives for Commercial Real Estate and Other Investments
Deferred Capital Gains and Tax Abatement Under New IRC Section 1400Z; Forming Qualified Opportunity Funds
Recording of a 90-minute CLE webinar with Q&A
This CLE webinar will give real estate, venture capital, and finance counsel a working knowledge of “Qualified Opportunity Zones” and “Qualified Opportunity Funds” created under the new tax law. The panel will discuss capital gains deferral, tax free treatment of long-term appreciation, and other tax benefits associated with making real estate and other business investments in qualified opportunity zones, eligibility requirements, the process for getting fund approval, fund formation, and more.
- Qualified Opportunity Zones—what are they?
- Creation under tax reform bill—designation by the states
- Types of investment—commercial real estate and operating businesses
- Qualified Opportunity Funds—eligibility requirements, formation, self-certification
- Tax incentives to invest in Qualified Opportunity Funds/Zones
- Deferral of short- and long-term capital gains
- Step up in tax basis
- Tax abatement of all post-investment appreciation
- Pairing Qualified Opportunity Zone investments with new markets tax credits, low-income housing tax credits, renewable energy investment and production tax credits, and other tax incentive programs
- Advanced Structuring Considerations
The panel will review these and other critical issues:
- What are Qualified Opportunity Zones, and how are they determined?
- What are the tax deferral and tax abatement features of qualifying investments?
- How are Qualified Opportunity Funds approved, and what is the preferred entity structure?
- When must the reinvestment of capital gains be made, and how long must it be held, to qualify for the tax benefits?
- Timing Issues and Strategies for investment in Qualified Opportunity Funds
- Substantial Improvement Test
- What significant questions are subject to further Treasury guidance or proposed Treasury Regulations?
- How might Qualified Opportunity Funds be used in real estate development and finance, and can they be twinned with other tax incentives?
Ryan D. Bailine
Mr. Bailine’s practice focuses on the development and financing of complex real estate projects, including real... | Read More
Mr. Bailine’s practice focuses on the development and financing of complex real estate projects, including real estate, land use, and regulatory aspects. He represents some of the most active and prolific developers in North America, advising on residential, commercial, industrial and mixed-use projects, including Transit Oriented Developments (TOD), affordable housing, and public-private endeavors. He routinely works with local, regional and national regulatory agencies to facilitate the permitting, construction, development, and financing of real estate projects.Close
James O. Lang
Mr. Lang focuses his tax and corporate project finance practice on tax credit incentive programs and related state and... | Read More
Mr. Lang focuses his tax and corporate project finance practice on tax credit incentive programs and related state and federal incentive programs. He represents investors, lenders, community development entities, and for-profit and not-for-profit projects in complex transactions where capital stacks require enhancement through incentive financing. He works with investors, lenders, project sponsors, and qualifying businesses to structure these tax credit programs along with ancillary governmental and non-governmental financing programs.Close