Qualified Opportunity Zones (PDF)
Qualifications Needed For A Qualified Opportunity Zone (QOZ) Fund
1. Entity taxed as either a partnership or a corporation.
2. 90% of its assets are QOZ Property
- QOZ stock[QOZ Business]
- QOZ partnership Interest [QOZ Business]
- QOZ Business Property
Obtained by Purchase after 12/31/17; Original use commences with QOZ Fund or substantially improves property; During any 30 month period; and Additional basis to property exceeding basis at beginning of 30-month period. Substantially all use of property is in QOZ
3. QOZ Business
- Substantially all tangible property in QOZ property
- Excludes certain businesses under IRC 144(c)(6)B)
- Satisfies IRC 1397C(b) requirements
4. Excluded Businesses Under IRC 144(c)(6)(B)
“no portion of the proceeds of such issue is to be used to provide (including the provision of land for) any private or commercial golf course, country club, massage parlor, hot tub facility, suntan facility, racetrack or other facility used for gambling, or any store the principal business of which is the sale of alcoholic beverages for consumption off premises.”
5. Needed Requirements Under IRC 1397C(b)
(2) at least 50 percent of the total gross income of such entity is derived from the active conduct of such business; (4) a substantial portion of the intangible property of such entity is used in the active conduct of any such business; and (8) less than 5 percent of the average of the aggregate unadjusted bases of the property of such entity is attributable to nonqualified financial property