Qualified Opportunity Zones Revisited: Tax Incentives for Commercial Real Estate and Other Investment
Deferred Capital Gains and Tax Abatement Under IRC Section 1400Z; Forming Qualified Opportunity Funds
Note: CPE credit is not offered on this program
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE course will analyze the current regulatory and tax framework around Qualified Opportunity Zones (QOZs), including capital gains deferral, tax-free treatment of long-term appreciation, and other tax benefits associated with real estate and other investments in QOZs. The panel will discuss eligibility requirements for Qualified Opportunity Funds (QOFs), the process for getting fund approval, and fund formation. The panel will also discuss the potential impact of the Biden administration's tax plan on QOZs.
- Qualified Opportunity Zones
- Legislative history: 2017 tax act and subsequent regulations
- Designation by QOZs 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
- Possible changes under the Biden administration
The panel will review these and other critical issues:
- What are the tax deferral and tax abatement features of QOZ investment?
- How are QOFs 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?
- What significant questions are subject to further Treasury guidance or proposed regulations?
- How might QOZ investments be used in real estate development and finance, and can they be twinned with other tax incentives?
- How might reporting obligations of QOFs change under the Biden administration?
Brad A. Molotsky
Mr. Molotsky’s primary practice is focused in the areas of commercial leasing, acquisitions and divestitures,... | Read More
Mr. Molotsky’s primary practice is focused in the areas of commercial leasing, acquisitions and divestitures, property management, financing, public private partnership and real estate joint ventures (including mixed-use development). He also has deep experience in board governance and managing public company issues such as enterprise risk, internal audit, compensation, proxy statement preparation and review, as well as energy efficiency and sustainability and corporate social responsibility. Previously for nearly 20 years, he served as executive vice president, general counsel and corporate secretary of Brandywine Realty Trust where he was responsible for all legal operations of the company, including acquisitions and divestitures, financings, joint ventures, board matters, insurance procurement, litigation oversight, SEC filing oversight and the legal aspects of capital raising.Close
Joseph J. Scalio
Mr. Scalio is KPMG’s Pennsylvania Business Unit Tax Leader in the Passthrough and Asset Management Practices,... | Read More
Mr. Scalio is KPMG’s Pennsylvania Business Unit Tax Leader in the Passthrough and Asset Management Practices, KPMG’s Pennsylvania Business Unit Leader in the Real Estate Practice, KPMG’s U.S. Tax Leader in the Publicly Traded Partnerships (“PTPs”)/Master Limited Partnerships (“MLPs”) Practice, and KPMG’s U.S. Co-Tax Leader in the Umbrella Partnership Corporations (“Up-Cs”) Practice.Close