Wealth Planning with Qualified Opportunity Zones
What estate planners—and real estate and business lawyers— should know about the investment strategies now available
- Product Number: 2210109P01
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CLE Credits, earn up to:
3 substantive credits, 0 ethics credits CLE Credit Note -
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Product Description
Product Description
Qualified Opportunity Zones ("QOZs") were added to the Internal Revenue Code by the 2017 Tax Cuts and Jobs Act—and thereafter became part of the American tax vernacular. The relevant provisions in Internal Revenue Code §§ 1400Z-1 and 1400Z-2, referred to as the "OZ Act," create an entirely legal form of tax-favored investment— commonly known as a "tax shelter"—that is accessible by all U.S. taxpayers.
A taxpayer who timely invests capital gain from the sale of property into a "Qualified Opportunity Fund" ("QOF") can enjoy the following federal income tax benefits:
- Deferral: Taxation of capital gain that is invested into a QOF is deferred until the earlier of the date that the taxpayer sells its interest in the QOF or December 31, 2026.
- Basis Adjustments: If the taxpayer invests in the QOF for at least 5 years, tax basis is increased by 10% of the original gain; if the investment lasts for at least 7 years, an additional 5% (for a total of 15%) of the original gain is added to the tax basis.
- Appreciation Exclusion: Best of all, if the taxpayer invests in the QOF for at least 10 years, gain on sale of the QOF will be tax-free.
Although many investors searched for real estate development projects located in Opportunity Zones, the "opportunity" is much broader. One can argue that the foremost purpose of the OZ Act is to promote creation of new businesses—including high-tech start-up businesses—in OZ locations. In short, the OZ Act, cast as a real estate incentive, is actually the biggest venture capital tax incentive in years. This new program gives you the skillset to advise clients on how to best take advantage of the very attractive, but technically complex, tax incentives under the OZ Act. -
Agenda
Agenda & Materials
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9:30 - 9:50 am
Introduction and Technical Requirements; Investment Deadlines; The Run from the Date Gain Is Recognized to the Investment Date into a QOF; How to Invest Timely into a Qualified Opportunity Zone Business (“QOZB”)
on demand video Add to CartJoseph B. Darby, III, Esq., Joseph Darby Law, PC , Boston
Kristin M. Kelley, KLR, Private Client Services Group , Waltham
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9:50 - 10:10 am
The Land of OZ from 30,000 Feet – Investment Structure; Buying More Time to Find Investments; COVID Relief Notice
on demand video Add to CartJoseph B. Darby, III, Esq., Joseph Darby Law, PC , Boston
Kristin M. Kelley, KLR, Private Client Services Group , Waltham
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10:10 - 10:25 am
What is an Opportunity Zone? How was an Opportunity Zone determined
on demand video Add to CartJoseph B. Darby, III, Esq., Joseph Darby Law, PC , Boston
Kristin M. Kelley, KLR, Private Client Services Group , Waltham
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10:25 - 10:40 am
How do The Tax Benefits Work? Example of deferral, tax basis adjustment and exclusion
on demand video Add to CartJoseph B. Darby, III, Esq., Joseph Darby Law, PC , Boston
Kristin M. Kelley, KLR, Private Client Services Group , Waltham
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10:40 - 10:55 am
Tax Benefits in Further Detail – Tax Filing and Reporting
on demand video Add to CartJoseph B. Darby, III, Esq., Joseph Darby Law, PC , Boston
Kristin M. Kelley, KLR, Private Client Services Group , Waltham
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10:55 - 11:10 am
Requirements of a Qualified Opportunity Fund – Entity type; Eligible Investments
on demand video Add to CartJoseph B. Darby, III, Esq., Joseph Darby Law, PC , Boston
Kristin M. Kelley, KLR, Private Client Services Group , Waltham
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11:10 - 11:25 am
Qualified Opportunity Zone Property – Stock; Partnership Interest; Business Property
on demand video Add to CartJoseph B. Darby, III, Esq., Joseph Darby Law, PC , Boston
Kristin M. Kelley, KLR, Private Client Services Group , Waltham
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11:25 - 11:45 am
Qualified Opportunity Zone Business – Tangible Property test, Income Test, IP Test, NQFP Test, Disqualified Business Test
on demand video Add to CartJoseph B. Darby, III, Esq., Joseph Darby Law, PC , Boston
Kristin M. Kelley, KLR, Private Client Services Group , Waltham
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11:45 - 12:15 pm
Estate and Gift Planning Issues
on demand video Add to CartJoseph B. Darby, III, Esq., Joseph Darby Law, PC , Boston
Kristin M. Kelley, KLR, Private Client Services Group , Waltham
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