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How can I get my corporation certified as a Qualified Opportunity Fund?

Which corporations and partnerships are eligible to become QOFs?


Answers
  • Guy Nicio
    December 01, 2020

    It's a self-certification process with the filing of the relevant entity business tax return and attaching the appropriate forms. This is something that your CPA would do for you after reviewing that you meet the criteria to be a QOZF and/or your attorney. It is not something that I would suggest anyone try to do without qualified knowledgeable advisors. By virtue of your question on how you get your corporation certified, it sounds like you are missing the entirety of what it is, so you may benefit from a webinar to explain because it is not a quick answer. You effectively need to meet all the criteria of an Opportunity Zone Fund which means that you have to have Qualified Opportunity Zone Business Property which has a very lengthy set of rules and definitions. Some of the rules include: 1- At least 90% of all assets owned by the fund must be QOZBP. 2- QOZBP is property in a QOZB or stock, equity in a Zone Business. 3- A Zone Business has another extensive set of criteria including the 50% gross income test which can be met several ways. This is the tip of the iceberg in rules meant to illustrate the complexity of your question and the need for you to get an advisor or attend an educational seminar as your question would require much explanation and time to answer properly.

  • Matthew Rappaport
    December 04, 2020

    Certifying is easy. File form 8996 with the corporation's form 1120 or form 1120S. It's the ongoing compliance that is more complicated.

  • Maria De Los Angeles Rivera
    December 23, 2020

    You auto certify the filing form 8996 for the first year that the entity is a QOF.

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