Follow simple requirements in the regulations. It is easy to comply.
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How can leased property be qualified property when leased from a related party?
How can leased property be qualified property when leased from a related party?
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There are guidelines in the regulations regarding property leased from a related party. Generally, the lease must be at arm's length and cannot include any prepayments.
The regulations generously allow a related party lease to be used in an Opportunity Zone, but there are a handful of stipulations that must be met. This includes things such as requiring and arm's length rental rate and not allowing any prepayments of rent.
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