For the Qualified Opportunity Zone Business (QOZB), the term “substantially all” means at least 70% when referencing the amount of Qualified Opportunity Zone Business Property the QOZB must own at the end of each taxable year.
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For a business to qualify for QOF funding, how much is “substantially all” when it comes to the business’ tangible business property?
I think my business has about 75%. Is that enough and how is that accurately calculated? What’s included as tangible property?
Answers
QOZBs have a 70% standard. If you're operating out of the QOF directly, it's a 90% standard. All property will be included in this testing as long as it's used in the entity's trade or business.
The general rule is that at least 70% of the tangible property is QOZBP.
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