Simply Tax Episode 45

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You unlock this opportunity with the recognition of gain. Beyond is an opportunity … an opportunity of deferral, an opportunity of reduced recognition of gain, an opportunity of permanent exclusion of gains related to the appreciation on a Qualified Opportunity Fund (QOF) investment after a 10-year holding period. You’re moving into a land of both clarity and remaining uncertainty, of guidance received and guidance yet to come. You’ve just crossed over into the Opportunity Zone with returning guest Derek Smith!

• What’s an eligible gain? @ 01:18
• Can partnerships and S corporations be investors in QOFs? @ 04:32
• What if the partnership or S corp chooses not to invest in a QOF? @ 05:23
• Did we get guidance on working capital? @ 07:08
• Does the guidance give us what we’ve been waiting for on QOFs? @ 09:00
• What’s “substantial improvement”? @ 9:57
• How is trade or business defined for this purpose? @13:58
• Do we know what “used primarily within the QOZ” means yet? @ 16:09
• Do we have to worry about the passive activity loss limitation rules? @ 18:24
• What options do partners and S corp shareholders have if there was a midyear gain recognition event? @ 19:07
• Should you have QOZ FOMO? @ 21:26
• What happens if the designation expires during the holding period? @ 23:18
• What are Derek’s key takeaways from the first round of proposed regulations? @ 26:07

Derek is a member of BKD National Construction & Real Estate Group. With technical expertise in partnerships, Derek is a firmwide resource on partnership-related issues and works with individuals and closely held businesses to help develop and implement business structures and tax savings strategies.

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Article: Opportunity Zone Guidance Issued by IRS 
Webinar: Critical New Insights on Proposed Opportunity Zone Regulations 
Podcast: Episode 41: What's a Qualified Opportunity Zone? 


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