Our multidisciplinary team is composed of recognized thought leaders in the evolving realm of the recently enacted QOZ program. We are actively engaged in transactional work with Qualified Opportunity Zone assets and are navigating the regulatory changes in real time as the Qualified Opportunity Zone landscape continues to come into focus.We help our clients unlock the benefits of the Qualified Opportunity Zone program by developing strategies to raise QOZ advantaged “rollover” capital, creating tax compliant Qualified Opportunity Funds, and maximizing the value of QOZ assets. We are actively involved with a broad spectrum of QOZ assets, including all categories of real estate, as well as energy, infrastructure and other active business projects. By creating a team that combines our understanding of the QOZ program and its requirements with our business-minded approach and experience in real estate, infrastructure, energy, private equity, fund formation and design and securities compliance, we are able to provide thoughtful and comprehensive advice to help our clients achieve their goals.
What Is a Qualified Opportunity Zone and Qualified Opportunity Fund?
The 2017 Tax Cuts and Jobs Act created a new program for QOZs that offers potentially significant tax incentives for investors to help attract funding for projects and businesses in economically distressed communities nationwide.
An Opportunity Zone is an economically distressed community where new investments, under certain conditions, may be eligible for preferential tax treatment. A QOF is a fund that generally invests its assets in businesses or tangible property located in Opportunity Zones.
What Are the Tax Benefits?
Investors can achieve three significant tax benefits:
- The ability to defer taxable gain realized on the sale or disposition of property until as late as December 31, 2026, if the gains are invested in a QOF within 180 days of the property’s disposition.
- The elimination of up to 15% of the gain that has been reinvested in a QOF provided that certain holding period requirements are met.
- The potential elimination of tax on gains associated with the appreciation in the value of a QOF, provided that the investment in the QOF is held for at least 10 years.
Real estate developers, investment managers, fund sponsors, family offices, foreign investors with U.S. capital gains, institutional and private investors, entrepreneurs, small to large businesses, infrastructure funds, solar developers, cities, and urban and rural economic development associations.
Click here to view Stroock's recent presentation on Qualified Opportunity Zones and Qualified Opportunity Funds.
In The Spotlight
November 27, 2018|Stroock CommentaryQualified Opportunity Zones: More of Your Questions Answered
November 6, 2018|Stroock Special BulletinSix Burning Questions on the New Qualified Opportunity Zone Guidance
October 19, 2018|Stroock Special BulletinStroock’s Take on the New ‘Qualified Opportunity Zone’ Guidance
August 28, 2018|Stroock Special Bulletin“Qualified Opportunity Funds: Tax Strategies and Opportunities for Real Estate and Other Investors”
August 1, 2018|TaxStringer“When Opportunity Knocks to Defer Tax on Gains: ‘Qualified Opportunity Funds’”
Lawyers In This Group
|Micah W. Bloomfield||Partner||New York||
Micah W. Bloomfield
|Brian Diamond||Partner||New York||
|Michael S. Emanuel||Partner||New York||
Michael S. Emanuel
|Mayer Greenberg||Partner||New York||
|Evan Hudson||Partner||New York||
|Michelle M. Jewett||Partner||New York||
Michelle M. Jewett
|Richard G. Madris||Partner||New York||
Richard G. Madris
|Kevin Matz||Partner||New York||
|Ross F. Moskowitz||Partner||New York||
Ross F. Moskowitz
|André B. Nance||Partner||New York||
André B. Nance
|Eric Requenez||Partner||New York||
|Brian J. Senie||Associate||New York||
Brian J. Senie
|Jeffrey D. Uffner||Partner||New York||
Jeffrey D. Uffner