Qualified Opportunity Zone Fund Process
Plan and structure a Qualified Opportunity Zone Fund (QOF) assigned for the first few years of development/startup, including communication of testing dates and law changes.
Three years, depending on the specific timeline of the QOF investment and investment type.
Why Three Years?
The QOF law and regulations are complex and ever-changing. Small details can completely derail a project and prevent it from qualifying. We will partner with you for the first stage of the project to structure the Fund and assist with the QOF’s continuing qualification, and the most critical dates and thresholds occur.
Due Diligence and Fund Structuring
- Advice on structuring the fund to achieve desired benefits under the laws, rules, and regulations applicable to QOFs.
- Research as needed regarding the qualifications of the QOF.
- Meetings and correspondence about the QOF, including communication with attorneys or other professionals engaged in such project.
- Identify and communicate critical dates and timelines related to the QOF, specifically:
- Working Capital Safe Harbor
- Substantial improvement criteria
- QOF testing dates
- Periodic reminders of such dates will be provided as needed
- Assist with calculations required for testing dates of the QOF.
- Analysis of potential tax concerns in operating agreements and other Fund organizational documents (e.g., term sheets and other offerings) for the QOF.
Termination of Project:
- Final delivery of annual testing dates.
- Final review of fund for good standing.
- BeachFleischman PC REQUIRES that we prepare the income tax return for the QOF as part of the consulting engagement, including preparation of the self-certification forms designated by the IRS to ensure accuracy of self-certification.
- Please remove the 3rd bullet “Restructuring of QOF after…”
- Consulting for investors in QOF to determine the availability of gain deferrals, elections, applicability, etc.
- Tax projections or gain calculations from project.
- Tax consulting or planning not related to QOF laws, rules, and regulations
- Cost segregation studies.
- Correspondence with external investors regarding their investment in the project as it relates to QOF.
Our QOF engagements are structured as a fixed fee arrangement payable in specific installments over the life of the engagement. Additionally, the fee is all-inclusive and does not change unless a new scope and fee are agreed upon by all parties in advance.
Please contact Eric Freeman for more information about our Qualified Opportunity Zone consulting services using the form below.