Tax Implications of Selling QOZ Development ahead of Occ. Certificate
Does anyone know the tax implications, if any, on the sale of a property within an opportunity zone ahead of an occupancy cert. or temporary occupancy cert?
[{"id": "i0xibjn", "text": "Need to hold for 10 years to get max tax benefit. Otherwise just get capital gain deferral and a reduction on basis of the capital injection into the deal", "replies": [{"id": "i0xjns7", "text": "Thanks, so the disposition ahead of completion does not have any specific ramifications?", "replies": [{"id": "i0ya5zv", "text": "There are three entities\nQualified opportunity fund\nAnd\nQualified opportunity zone business\nAnd then there are \nInvestor injecting capital gains\n\nBoth have requirements. Ie qozb must complete significant upgrade in 30 month.\n\nGet yourself a tax attorney. Alot subtleties here and OZ have a high audit rate", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i0yij5k", "text": "Why would you sell a qoz development before you realize the benefit of the qoz?", "replies": [{"id": "i10fntj", "text": "Good Q!  The scenario involves a high performing market with an owner who has accessed permits and found the opportunity for a desirable exit without development risk.", "replies": [], "depth": 2}, {"id": "ib191r4", "text": "You might need the money.", "replies": [], "depth": 2}], "depth": 1}]