Qualified Opportunity Zones. If anyone has any experience?
I purchased a piece of land in a Qualified Opportunity Zone (QOZ). We plan on building multi-family on the parcel. The question is does my LLC need to register as a Qualified Opportunity Fund to receive the benefits or is it fine as is. Not sure if it’s the same for all states but this is the benefit I am after. 

“Permanent Exclusion. If the QOF holds the investment for 10 or more years, they pay zero federal capital gains taxes on any appreciation of the investment.”

lol I know it says QOF in it but I just wanna make sure before I go to accountant/lawyer and so on
[{"id": "ij4scrm", "text": "There is a thread from a few days ago:\n\n[https://www.reddit.com/r/CommercialRealEstate/comments/werjx2/commercial\\_development\\_project\\_in\\_an\\_opportunity/](https://www.reddit.com/r/CommercialRealEstate/comments/werjx2/commercial_development_project_in_an_opportunity/)\n\nNote that there are lots of rules to make this work.  You need two entities to make this work, a QOF (qualified opportunity fund) and a QOZB (qualified opportunity zone business).  The QOF must be taxed as a partnership and takes funds with untaxed capital gains to invest in the QOZB.  The QOZB does the actual work in the opportunity zone and probably could be your LLC.\n\nDid I mention that there are lots of rules that need to be followed?  I've been working through this myself.  Some of the videos here explain a lot of the details:\n\n[https://www.youtube.com/c/OpportunityDb](https://www.youtube.com/c/OpportunityDb)", "replies": [{"id": "ij4t4u0", "text": "lol somehow I\u2019m on this sub everyday and never came across that one. Next I will search bar my question lol But I greatly appreciate it. And Yes lots of rules to follow. I really ask cause I do plan to basically reinvest multiple times in the same area. Sounds like more time and money upfront then benefits in the future. Thank you though", "replies": [{"id": "ij4tv70", "text": "If you are doing multiple projects, a single QOF can be formed to invest in all of them.  At least 90% of the QOF money must go into QOZB's.  Your QOZB's can also take money from other people's QOF's.  At least 70% of a QOZB's assets must be qualified for the OZ.", "replies": [{"id": "ij4wmsr", "text": "Interesting I feel like I can make this work. Any advice before starting this man to the moon mission? lol", "replies": [{"id": "ij4x4po", "text": "I'm just a beginner at this, so it is hard to give advice.  My plan is to figure out how to do it to the best of my abilities, and then find a lawyer that already has oz experience to help me put everything in place.", "replies": [{"id": "il90bmz", "text": "ha my thinking as well", "replies": [], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ij530qa", "text": "Tooooo late, friend. The QOF/QOB must be funded with qualified gains and then purchase the property. You can loan the LLC additional cash but you only want the investment to be gains or you dilute the benefit. IIRC you cannot contribute property as that's not a gain. So next time, have a capital gain, form the LLC properly, then purchase.", "replies": [{"id": "ij54na0", "text": "What about the development capital that is going towards the project? It will be made up of a new LLC. We have 2 pieces of land about to sell so the gains from those could go towards the development LLC. Does the QOF have to buy the land and be on the development side or can it just be either or?", "replies": [{"id": "ij57p4f", "text": "Ideally the QOF (funded with cap gains) funds the QOZB to buy the property, so that it is purchased with qualified funds.  If you bought the property with other money, not all is lost if you do enough development with qualified funds to maintain a 70%/30% qualified/unqualified ratio.  Read this:\n\n[https://www.jdsupra.com/legalnews/ding-dong-the-oz-ground-lease-may-be-7317224/](https://www.jdsupra.com/legalnews/ding-dong-the-oz-ground-lease-may-be-7317224/)", "replies": [{"id": "ij596xr", "text": "Wow You are the best! (Again) I value the dedicated time you have put in to researching about this! That answered all my questions", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ijz8ke8", "text": "Just as an FYI, you don't need to invest in a QOZ in order to avoid paying capital gains taxes.  if you put it into the trust I have (I've been a real estate investor for 20 years in FL), all capital gains taxes are permanently deferred.  This way, you can live, invest, or earn anywhere you want w/o having to worry about capital gains taxes anymore.  FYI", "replies": [{"id": "ik1bkp7", "text": "Same same", "replies": [{"id": "ik1lskg", "text": "not sure what same same means in this context", "replies": [{"id": "ik2dazf", "text": "QOF eliminates taxes as well as a The Trust. So they are both same same", "replies": [{"id": "ik2dyyo", "text": "Oh. Duh. I'm just saying that you have more flexibility to save on taxes anywhere, not just in a QOF", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "ik2tlxf", "text": "A qualified investment in an opportunity zone doesn't just permanently defer capital gains, all gains held for 10+ years (up until 2047) come back to you untaxed.  This can happen without moving anything into a trust or entity under someone else's control.\n\nYou don't need to invest in an OZ, put your money in someone else's trust, or eat a banana sandwich in June.  However the opportunity zone lets you make an investment, sell your appreciated property, and not pay any tax on the gains.", "replies": [{"id": "ik5p48d", "text": "There is no entity under someone else's control.  As trustee of the trust, you control all of the assets.  You're also never required to eat a banana period, regardless of the month.  The trust allows you to make an investment, sell your appreciated property, and not pay any tax on the gains.  You never pay taxes on the capital gains and you can invest wherever you'd like, in or outside an opportunity zone.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}]