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How does the proptech sector work with Opportunity Zones?

Is this industry a good match for OZs and how can I find QOF in this sector?


Answers
  • Guy Nicio
    July 14, 2020

    The Opportunity Zones are industry agnostic, as long as it's not one of the prohibited sin business all the sectors have the same tax benefits. You just have to meet all the criteria for an OZ Business (e.g., gross income test, employee source to zone, 70% OZ assets, limited to 5% nonqualified financial property, etc.)

  • Matthew Rappaport
    July 15, 2020

    I doubt you'll find a public-facing PropTech QOF. You'd really have to hunt for it. But PropTech works as a QOZB if you set up shop inside of an OZ, despite the idea you might be creating a primarily digital product. Bonus points if you synthesize the QOZ tax benefits with QSBS.

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