In order to benefit from the OZ incentives, the investment must be done through a QOF.
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How can an investor invest directly into an Opportunity Zone business to qualify for associated tax incentives?
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This is not possible. Investment must be through a QOF, period. Direct investment is not qualified.
They can’t. They will need to invest directly into a Qualified Opportunity Fund and meet the applicable investor requirements.
An investor cannot qualify for opportunity zone (OZ) benefits by simply investing directly into a qualified opportunity zone business (QOZB). Instead, the investor must invest in a qualified opportunity fund (QOF), which would then invest into the QOZB. A QOF for this purpose can be as simple as an LLC (i) in which the investor and one other member invest (even if it's his/her spouse and even if it's for just a 1% interest) and (ii) that has a statement in its organization documents saying that it was formed for the purpose of the investing in qualified opportunity zone property and describing the QOZB.
There are money OP Zone funds designed to produce the desired tax benefits. Just do an internet search on OP Zone funds.
An investor with ripe capital gains can invest in any QOF.
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