Opportunity zones are new tax incentives created by the Tax Cuts & Jobs Act. But since they are so new, many people are still wrapping their heads around them. In this article, we are going to define a few terms and acronyms that relate to opportunity zones.
QOZ – Qualified Opportunity Zone
A qualified opportunity zone is a designated area in which business must be conducted for the opportunity zone tax benefits to apply.
QOF – Qualified Opportunity Fund
A qualified opportunity fund is a partnership, C corporation, or S corporation in which a taxpayer can invest in and defer eligible gain on the sale of property.
QOZP – Qualified Opportunity Zone Property
A qualified opportunity zone property can be a qualified opportunity zone business property (QOZB) or an interest in a subsidiary that conducts qualified opportunity zone business.
QOZB – Qualified Opportunity Zone Business
A qualified opportunity zone business is a subsidiary that conducts qualified opportunity zone business and must meet the definition of a QOZB in order to do so.
Defer Your Taxes with a Like-Kind Exchange
When you’re embarking on a 1031 exchange, it’s important to have a qualified intermediary by your side to help facilitate the transaction. Our intermediaries have twenty years of experience that we can put to work for you. Reach out to our qualified intermediaries now to learn about how a like-kind exchange can save you money on capital gains taxes. Our main office is located in downtown Minneapolis (in the US Bank building) and we provide exchange services throughout the country.
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