What rules apply to an OZ Fund that indirectly invests in qualified opportunity zone business property?

What rules apply to an OZ Fund that indirectly invests in qualified opportunity zone business property?

To qualify, the OZ Fund must satisfy all of the following requirements:

  • Acquire its equity interest in the OZ Subsidiary solely for cash after December 31, 2017, and in the case of an OZ Subsidiary that is a corporation, the acquisition must be at its original issue.
  • At such time as the equity interest in the OZ Subsidiary was acquired, the OZ subsidiary was a qualified opportunity zone business, or if the OZ Subsidiary was newly formed, it was organized for the purpose of becoming a qualified opportunity zone business property.
  • During substantially all of the OZ Fund’s holding period, the OZ Subsidiary must be a qualified opportunity zone business.
2018-10-02T17:18:00+00:00 October 2nd, 2018|