Opportunity Zone Magazine is pleased to announce the Top 25 Opportunity Zone Tax Specialists. The distinguished winners help participants in the OZ industry with tax advice and accounting.
Blake Christian
Holthouse Carlin & Van Trigt LLP
Blake Christian is a tax partner in HCVT, a Top 30 National CPA firm headquartered in Los Angeles. He is also the managing member of MIT Modular – a Provo, Utah-based ESG OZ Fund focused on converting shipping containers into housing, retail and special purpose uses. Christian brings over 40 years of experience providing tax consulting and compliance services to clients. A thought leader, he is a frequent speaker and national media source. He has published over 200 tax and financial articles, and co-authored the book “How to OZ.”
What new tax changes impacting the Opportunity Zone industry can we expect in 2022?
Thankfully, the OZ program continues to be supported by both sides of the aisle. Both President Biden and Vice President Harris support the program and recognize its power for both real estate projects and operating businesses. I anticipate that we will see enhanced QOF and QOZB reporting with respect to the projects being undertaken by OZ Funds, the employee headcount and anticipated economic impact on the community. I also expect that we will see President Biden’s requested incentive for OZ Funds to partner with local charitable organizations to pass – along with public-private partnerships as part of the Build Back Better legislation. Finally, I am hopeful that one of the tax bills extending the five and/or seven-year basis increases will pass.
Anthony Giacalone
HBK
Anthony Giacalone is a principal in HBK’s Southeast Florida region and has been with the firm since 2011. He has a bachelor’s degree in accounting and a Master of Accounting & Taxation from Florida Gulf Coast University. He is a licensed CPA in the state of Florida with extensive experience in the areas of accounting, taxation, estate planning and transaction advisory services. Giacalone has been honored as a Top 25 Opportunity Zone influencer, and participant in the 2020-21 Leadership Palm Beach County Engage Program. He has provided extensive consulting and tax planning for Opportunity Zone investments since the program’s creation.
What new tax changes impacting the Opportunity Zone industry can we expect in 2022?
In 2022, Opportunity Zone investors will shift focus to the long-term tax deferral benefits of their investments. Investments made after 12.31.2021 will no longer receive a step-up in basis and corresponding permanent gain exclusion available previously. However, post-contribution tax-free appreciation remains an attractive upside should the 10-year holding period be achieved. The remaining gain deferral until the legislative inclusion date of 12.31.2026 will remain a planning tool available for tax consultants. Fund managers will surely be integrating cashflow planning for investors’ future tax distributions needed, however significant upside remains for taxpayers and funds looking to capitalize on OZs.
Gordon Goldie
Plante Moran
Gordon Goldie is one of the leaders of Plante Moran's housing and community development solutions group. He assists for-profit and not-for-profit clients with real estate development projects involving tax incentives such as historic tax credits, New Markets Tax Credits, Brownfield redevelopment incentives, and the Opportunity Zones incentive. He assists clients nationwide in identifying available tax incentives and structuring transactions to optimize the net benefit of these incentives while ensuring compliance with all applicable tax law requirements. He is a technical expert on tax credits and incentives and often presents to groups.
What new tax changes impacting the Opportunity Zone industry can we expect in 2022?
The focus on 2022 tax changes is currently on the Built Back Better Act, which is far from certain to pass. If it passes, it appears that capital gain rates will not increase as initially feared, which is good news for taxpayers that already invested in QOFs. Build Back Better could significantly reduce Section 1202 qualified small business stock tax benefits, which would impact structuring decisions for QOFs investing in operating businesses. Section 1202 is frequently paired with OZ to enable QOFs investing in operating businesses to exclude gains on the sale of the business after a 5-year holding period.
Dustin Grizzle
MGO
Dustin Grizzle is a tax partner and office managing partner of the MGO Florida office with more than 15 years of experience providing tax planning, compliance, and consulting services to high-net-worth individuals, investment funds, and Opportunity Zone Funds. He has an extensive background in trust planning and compliance, IRS examination representation, and succession planning. Throughout his career, Grizzle has also guided real estate investment firms, private equity funds, and other real estate owners through the tax implications of sourcing investments, structuring funds, waterfall/promote allocations, and liquidating events. He focuses on effective tax strategies that support early-stage value and long-term exit plans.
What new tax changes impacting the Opportunity Zone industry can we expect in 2022?
Although the 10% step-up will not be available to those contributions in 2022-2026, I expect a significant number of capital transactions occurring in the first half of 2022, and those people will likely consider deferring income tax by investing in Opportunity Zones.
Valerie Grunduski
Plante Moran
As a real estate tax specialist and partner at Plante Moran, Valerie Grunduski advises clients on planning concerns related to purchases and sales, partner buy-outs and redemptions, tax and debt structuring, historic tax credits, and other community development incentives. She consults with clients on how to best utilize the new Opportunity Zone incentive. As the firm leader of this investment vehicle, she works with those seeking to create Opportunity Zone funds and is involved in a coalition to help policymakers shape regulations and legislative corrections. Grunduski regularly speaks about the program to associations and at conferences.
What new tax changes impacting the Opportunity Zone industry can we expect in 2022?
Anyone who follows the news out of D.C. knows that we face an uphill battle trying to predict what tax law changes are on the horizon – but we can at least make an educated guess! Given the impact that the OZ incentive has made in a relatively short time, I would love to see measures that allow the program to be extended beyond its current planned expiration. This could be in the form of an extension of the 2026 deferral period – there are currently many calls for an extension to 2028 – or result in a new round of QOZ designations and investment periods. Beyond an extension, proposed changes in rates could really supercharge the 10-year holding period benefit.
Mark Leeds
Mayer Brown
Mark H. Leeds is a tax partner with the law firm of Mayer Brown. His professional practice focuses on the tax consequences of a variety of investments, capital markets products and strategies, including Qualified Opportunity Funds. Leeds has worked on QOF structures for real estate projects and operating businesses. Prior to joining Mayer Brown, he was a managing director with Deutsche Bank AG in New York. Leeds is also a recipient of the 2015 Burton Award for Distinguished Legal Writing.
What new tax changes impacting the Opportunity Zone industry can we expect in 2022?
It appears very unlikely that Congress will pass any statutory changes to the QOZ rules in 2022. It is much more likely that the Internal Revenue Service will continue to provide regulatory guidance on the issues facing QOFs in 2022. My best bet is that the IRS will promulgate rules requiring disclosure of local impact of projects for which QOF benefits are claimed. Other issues ripe for consideration are the tax considerations applicable to changing projects if a specified project becomes unavailable, rules for QOZBs engaging in joint ventures and new rules for businesses that trade assets treated as commodities.
Dannielle Lewis
Wipfli LLP
As a CPA and specialist on tax, Dannielle Lewis helps people determine the best strategies for their real estate business. Her clients appreciate her ability to proactively plan and advise them to ensure they achieve their goals successfully. She is focused on serving clients in the real estate industry and leads the firm’s team of Qualified Opportunity Zone specialists. She is also a frequent speaker at industry events, stays up to date on the ever-changing tax laws and recognizes opportunities for new and potential clients to help save and structure their funds.
What new tax changes impacting the Opportunity Zone industry can we expect in 2022?
Currently, it is hard to predict whether the current legislation would have a big impact on Opportunity Zones. What will be interesting to see is if there is any change in the traction over Opportunity Zones now that one of the benefits has expired. Additionally, there could be more arduous compliance moving forward with Opportunity Zones given the recent Ways and Means Committee.
Frank Lucas
RSM US
Frank Lucas has more than 15 years of experience serving the real estate and hospitality practices. He provides tax consulting, business advisory, and tax compliance services to real estate funds (commercial, hospitality, and multifamily), private clubs, property management companies, developers, hotels and resorts, and common interest realty associations. Lucas has extensive experience working with tax-exempt and foreign ownership structures. In addition to these services, he has successfully represented numerous clients before the IRS in audit defense.
What new tax changes impacting the Opportunity Zone industry can we expect in 2022?
The hope would be an extension of some of the benefits, but the two recent acts (BBBA not currently finalized) are noticeably absent of QOZ. The majority of QOZ investments we’ve seen have all been real estate, and because development takes several years, it’s going to still be some time before we start to see and understand the true benefits of this program. As these developments finish, it will give everyone a better picture as to how beneficial this program has been.
Jonathan McGuire
Aldrich CPAs & Advisors, LLP
Jonathan McGuire’s experience is in providing strategic tax planning and compliance expertise to private middle-market clients. He has a deep focus as a real estate accountant, working with investors, developers, and private equity groups in real estate. He works with a wide variety of property types ranging from multi-family residential to all other commercial properties. McGuire specializes in repair regulations, partnership taxation, and Qualified Opportunity Zones. He has helped organize many unique transactions for his clients facing complex facts and circumstances, especially in the Opportunity Zone space.
What new tax changes impacting the Opportunity Zone industry can we expect in 2022?
Pending passage, I would take a keen interest in the proposed Neighborhood Homes Tax Credit. Although focused on single-family structures, it may be the missing link to create affordable or workforce housing needs for individuals located around Opportunity Zones. This credit could be a catalyst to making the QOZ program pop! Home ownership provides stability to our cities, which will help keep people invested in not only starting but continuing to operate QOZ Businesses.
Steven Meier
Seyfarth Shaw
Steve Meier chairs Seyfarth's corporate department, is co-chair of the firm’s national tax practice, and co-leads the Opportunity Zone Funds team. He is highly skilled in developing real estate and alternative investment programs of all types, including Qualified Opportunity Funds, REITs, cross border investment funds, and complex like-kind exchange programs (such as Delaware statutory trust investment programs). Clients appreciate his cutting-edge knowledge of the tax law and his ability to apply it in a grounded, common-sense manner to real estate and corporate transactions. Meier also serves as general tax counsel to numerous businesses and entrepreneurs, and advises them on domestic and cross-border M&A transactions, equity compensation, and dispositions to strategic and financial acquirers.
What new tax changes impacting the Opportunity Zone industry can we expect in 2022?
While there is hope that the gain deferral and the 10% basis benefit deadlines will each be extended by 2 years (to 2028 for gain deferral and to December 31, 2023 for the 10% basis benefit), the more likely change will be the resolution of nagging nonconformity issues impacting California and other states.
Michael Novogradac
Novogradac
Michael Novogradac is the managing partner of Novogradac, where he has specialized in affordable housing, community development, historic preservation and renewable energy tax incentives since 1989. He is the author of numerous real estate-related tax and accounting articles and books, including the Novogradac Opportunity Zones Handbook. He is frequently quoted in national media and speaks at conferences. Novogradac actively advocates for the inclusion of community development tax incentives in tax policy and provides input to federal and state agencies as well as members of Congress, including testimony before the United States House Committee on Ways and Means.
What new tax changes impacting the Opportunity Zone industry can we expect in 2022?
There are several potential, but currently unlikely, legislative tax changes that would affect Opportunity Zones investment in 2022, such as an increase in the corporate tax and individual capital gains rate, enactment of a reporting requirement, and phasing out some higher income Opportunity Zones. If tax rates on capital gains are higher, then the ability to invest in an Opportunity Fund and both defer paying taxes on current capital gains and exclude any future capital gains realized from OZ investments becomes even more valuable. We expect most tax changes to occur on the regulatory front, within the Treasury Department.
Maria de los Angeles Rivera
Grant Thornton
Maria de los Angeles Rivera has over 36 years of experience in public accounting. In her role as tax partner, she engages in the design and development of tax planning and consulting strategies, which includes tax services in mergers and acquisitions, business reorganizations, partnership transactions, tax incentives and exemptions, individual and corporate tax issues, and others. Since the designation of Puerto Rico as an Opportunity Zone, Rivera has been engaged in presentations as guest speaker, worked with grant applications, the development of tax planning structures, and other incentives programs for eligible taxpayers. Rivera holds a bachelor’s degree in business administration from Catholic University of Puerto Rico and a master’s degree in public accountancy from the University of Texas at Austin.
What new tax changes impacting the Opportunity Zone industry can we expect in 2022?
As we say in Puerto Rico, that is the 64,000 cents question! Any substantial change in the Opportunity Zones benefits will have to be legislated. What we know: IMPACT Act – bill presented to require more information and transparency to determine the impact of Opportunity Zone investment; bills presented for the possible extension to the December 31, 2026 statutory recognition date for deferred capital gains and possibility of obtaining the 10% step-up for investment made after December 31, 2021; possible change in long-term capital gains rate; requirement for legislation to adjust the designated zones after the results of the 2020 Census and inclusion of non-deferral investment for the long-term tax exclusion.
Daniel Ryan
Sullivan & Worcester
Daniel Ryan is a partner in the tax department at Sullivan & Worcester. He is one of the founders of the firm's Opportunity Zone practice group and has assisted in the structuring of over $1 billion in Opportunity Zone projects throughout the country, including both real estate and operating businesses. Ryan also represents taxpayers in federal and state tax litigation and controversies as well as transactional planning involving corporate, franchise, personal income and sales/use tax matters. Prior to joining Sullivan, he was an attorney at the Internal Revenue Service Office of Chief Counsel.
What new tax changes impacting the Opportunity Zone industry can we expect in 2022?
Because it does not appear that there will be any tax changes prior to year-end, the potential exists for some sort of tax changes to occur early in 2022. Hopefully any changes will include an extension of the 2026 deadline in the Opportunity Zone statute, and potentially the ability for governors to nominate new Opportunity Zones in their states and territories.
Ryan Schellhous
IndigoSpire Advisors LLC
Ryan Schellhous has been practicing as a CPA for over 15 years and managing IndigoSpire Advisors for the past five years. His Opportunity Zone tax practice emphasis has been on helping smaller individuals and families implement and navigate the QOZ complexities in small, privately-held entity groups. The firm manages and advises nearly 100 QOFs on issues such as asset-testing, distribution strategy, cash-flow management and QOZB stacking for investors who want to manage their own deals and retain investment autonomy instead of relying on investing in larger syndicated QOFs.
What new tax changes impacting the Opportunity Zone industry can we expect in 2022?
I am not expecting the current political environment to yield many changes to existing law. I am hopeful, however, that Treasury will continue to provide clarifying regulations, Congressional leads expand the geographies of QOZs and California to (finally!) adopt conformity to the QOZ legislation for state tax purposes. I also hope to see stronger deal flow to match the strong flow of capital looking for deals in QOZs.
Abe Schlisselfeld
Marks Paneth
Abe Schlisselfeld, CPA, EA, is the managing partner of Marks Paneth LLP, and is chairman of the firm’s executive committee. Previously, Schlisselfeld was the partner-in-charge of the firm’s Real Estate Group. In that role, he explored the tax benefits and implications of the Qualified Opportunity Zones program since its introduction in the Tax Cuts and Jobs Act of 2017, allowing him to become a sought-after speaker on the topic. In 2020, he was selected as one of the Top 25 Opportunity Zone Influencers in the Tax Specialist category by Opportunity Zone Magazine.
What new tax changes impacting the Opportunity Zone industry can we expect in 2022?
A few months ago, we were bracing for a sharp increase in the capital gains rates. That had many Opportunity Zone investors reassessing their positions in OZ investments. They had to figure out if the significant increase in tax (due in 2026) would materially affect their return. As that concern wore off, the Build Back Better Bill was contemplating a surcharge of 5-8% on those with income over $10/$25 million. With the act apparently off the table, there is somewhat of a sigh of relief from the OZ world. One thing I know for sure is to be ready for the unexpected.
John Sciarretti
Novogradac
John Sciarretti is a partner in Novogradac’s Dover, Ohio office, where he specializes in real estate finance, community development and renewable energy. Sciarretti focuses on the Opportunity Zones incentive, the historic tax credit, new markets tax credit and renewable energy tax credits. Sciarretti leads and coordinates the Novogradac Opportunity Zones Working Group, a membership organization that is highly regarded for the work it does addressing technical issues surrounding the OZ incentive. He consults with tax credit investors, syndicators, community development entities, Qualified Opportunity Funds and developers on structuring and syndicating tax credits and other incentives.
What new tax changes impacting the Opportunity Zone industry can we expect in 2022?
There are a number of policy initiatives that the Novogradac Opportunity Zones Working Group would like to see move forward, including a two-year extension to the deferred gain recognition date, through the end of 2028, to make up for delays in final regulations and delays caused by the pandemic; a fund-to-fund concept that works with OZs, which doesn’t work under current law; as well as a number of regulatory modifications that we have communicated to the U.S. Department of the Treasury and the Internal Revenue Service that would make the incentive more useful for investing in affordable housing and operating businesses.
David Shapiro
Saul Ewing Arnstein & Lehr LLP
David G. Shapiro, partner and chair of Saul Ewing Arnstein & Lehr’s Tax Practice, advises clients on international and domestic business tax planning, including fund formation, mergers, acquisitions, and financing transactions. Shapiro is also a vice chair of the firm's Opportunity Zones and Qualified Opportunity Funds Practice, which consists of 40 attorneys who work together to handle tax, real estate, corporate and securities issues on investments and projects in these designated areas. Shapiro focuses in particular on offering guidance on the tax implications of investing in Opportunity Zones and on structures that combine Opportunity Zone tax benefits with other financing sources.
What new tax changes impacting the Opportunity Zone industry can we expect in 2022?
I anticipate continued pressure to raise tax rates on the highest earners. If that happens, that will create more value in the tax deferral and exclusion benefits that Opportunity Zone investments provide. In addition, as OZ investments mature, I expect we will see refinements to the existing Treasury regulatory guidance to clarify some of the remaining gray areas in the law. We may start to see audits of Opportunity Funds as well, though because of the various COVID-related relief measures significantly extending investment horizons for many Qualified Opportunity Funds and Qualified Opportunity Zone Businesses, the first substantive audits might not be until 2023 or beyond.
Kenneth Weissenberg
EisnerAmper
Kenneth Weissenberg is a tax partner and co-leader of the National Real Estate practice. His experience encompasses all aspects of the real estate industry, ranging from developing tax saving strategies for owning and operating property to structuring and negotiating complex sales, acquisitions, and financing transactions. Weissenberg consults with a variety of public and private REITs on tax planning and compliance issues. He has also served as a witness and arbitrator in complex litigations involving real estate issues. The national leader of the LGBT and Alternative Family Services Group, Weissenberg has been a leader in developing tax and advisory services for same-sex couples. He is a frequent writer and speaker on topics for various professional groups and news organizations.
What new tax changes impacting the Opportunity Zone industry can we expect in 2022?
In 2022, it is likely that reporting on the investments in the Opportunity Zone may be enhanced to include the economic impact of each project or business created in the Zones. This reporting would include the number of jobs created, the quality and type of housing units added or improved, and other socially impactful attributes of each project. Given the disruption to the program caused by both the pandemic and the delay in promulgating the rules, an extension of the December 2026 sunset of the program would seem appropriate.
Jennifer Wesselman
Barnes Dennig
Jennifer Wesselman has over 20 years of comprehensive tax experience, including Opportunity Zones, real estate, construction, and investment funds. She specializes in tax compliance, planning, and consulting for businesses and individuals. Her work with Opportunity Zones includes consulting on the setup and compliance for Qualified Opportunity Zone Funds and Qualified Opportunity Zone Businesses. She has been named a Top 25 influencer in the tax specialist category by Opportunity Zone Magazine. Wesselman earned a BBA degree in accounting from the University of Cincinnati. She is also a member of the American Institute of Certified Public Accountants.
What new tax changes impacting the Opportunity Zone industry can we expect in 2022?
We hope to see an extension of the 2026 deadline to recognize the invested deferred gain so investors who made their initial contributions in years after 2019 can benefit from the 5 and 7-year gain discounts. In addition, the legislation out there to extend the 2026 deadline also contains provisions to increase the number of Opportunity Zones. Finally, I think the OZ industry would benefit from additional testing windows and disclosures. The more people know about the impact OZ investments have on the community, the better.
Libin Zhang
Fried, Frank, Harris, Shriver & Jacobson LLP
Libin Zhang has been involved with Qualified Opportunity Zones for over four years and has worked on several billion dollars of actual invested capital for numerous Qualified Opportunity Funds and Businesses. His mid-2018 article "Qualified Opportunity Zones: Hot Tubs and Other Hot Topics" was one of the first articles to discuss the program and has been cited in at least two official Senate reports. His other Opportunity Zone commentaries have appeared in various publications. Zhang received his J.D., magna cum laude, from Harvard Law School, his LL.M. in taxation from New York University, and his B.S./M.S. joint degree from the California Institute of Technology.
What new tax changes impacting the Opportunity Zone industry can we expect in 2022?
I expect to see greater scrutiny, especially at the state and local levels, as to whether the tax subsidies are worthwhile. Places like New York and California have already decoupled from the federal tax benefits and more states may follow suit. But Opportunity Zones are here for the long haul and we should not focus too much on the changes in any single year. Members of the young and diverse Opportunity Zone community can expect to be busy with the program for many decades to come, until they can rest easy and relax after the tax benefits expire at the end of 2047.
Linda Bonelli
Deloitte
Michael Fitzpatrick
Baker Tilly
David Rosen
Rosen, Sapperstein and Friedlander, LLC
Joseph Scalio
KPMG
Ira Weinstein
CohnReznick
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