A QOF could invest in multiple zones by purchasing equity interests in lower-tiered entities structured as Qualified Opportunity Zone business entities (one per zone of interest). One benefit is diversification.
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How can a QOF invest in multiple Opportunity Zones?
How can a QOF invest in multiple Opportunity Zones? What are the benefits of choosing this strategy?
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While many early funds focused on a single venture, the regulations made it easier for a QOF to invest in many different underlying businesses and/or properties. It is important to be sure that you are respecting the various tests and property requirements in each zone but there is nothing special to qualify for one fund being invested in multiple QOZ's. Form 8996 provides ample space to report investment information across various census tract numbers.
Diversification is often good. A QOF does not need to invest in only one Opportunity Zone but can have holdings in multiple opportunity zones. It can do so directly or through property owned in a single QOZB or multiple QOZBs.
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