You can only get the tax benefits from investing in a QOZB if you invest through a QOF. You need to form your own QOF and invest in that first.
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How can I directly invest into a QOZB to qualify for tax incentives?
I’m an experienced investor and I don’t need to go through a fund.
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Absolutely. That's what most of my clients are doing.
The Opportunity Zone tax incentives are only available for recent capital gains that are invested in a qualified opportunity fund. If you bypass the fund level and invest directly into a QOZB, you won't be eligible for any of the OZ tax benefits. That said, it's relatively easy to set-up a self-directed Opportunity Fund which you could use to invest directly into one or more QOZBs.
You can invest directly into a QOZB, but you would not get any Opportunity Zone tax benefits, meaning no deferral, no reduction in cap gain and no exclusion from cap gain after 10 years. You would only get other incentives that the QOZB may have, historical tax credits or low-income housing credits for example.
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