Essentially, it is cost basis and qualified OZ businesses need to have at least 70% of their assets as qualified OZ business property.
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How do we measure the value of the assets for the purpose of the 70% requirement?
And when does the 70% requirement need to be tested?
Answers
Probably, at all times after six months.
Either cost basis of the assets or applicable financial statement value. Reporting for the 70% test is TBD. The IRS will eventually issue reporting requirements, but they're not out yet.
The regulations establish the methods to be used. If the entity has an applicable financial statement, the value of each asset reported in such financial statement. If the entity does not have an applicable financial statement, alternative method using unadjusted cost basis. Special rules apply of there is a 5% zone taxpayer.
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