Critical Opportunity Zone Decisions
In addition to the technical steps, there are critical decisions along the way when we can be most helpful. If you’re unsure about any of the following, call us:
- Selection of investment property
- Analysis of necessary and eligible improvements
- Calculation of potential gain and tax deduction
- Certification of the Qualified Opportunity Fund
- Entity selection for the investors’ partnership
- Timeline management: assistance in planning and documenting important dates
- Advising on complex deals such as integration with a 1031 exchange
- Documenting substantial improvement schedule and expenses
Community Development Through QOZs
We believe this incentive will be successful in uplifting distressed communities. Many long-time blighted buildings and streets have become prime investment opportunities almost overnight. But how and when will we actually see a shift?
We expect inventory in the zones to become sparse over the next 12-18 months and construction to begin very quickly. In OZs, longer investment equals bigger benefit so it’s important for investors to act fast. In fact, some benefits will begin decreasing in 2020, making December 31, 2019 the last date for investors to maximize potential tax savings. We anticipate seeing a substantial amount of activity before then.
The change should happen quickly because investors will be on the clock to finish the required improvements to their investment.
For example, in our neighborhood the designated zones are perfectly aligned with key initiatives and industries including the downtown revitalization efforts, bare farmland in South Fresno and the areas around Fresno State’s campus. This means less underutilized farmland, faster and bigger renovations, and more housing.
