How can funds prove that a substantial portion of the intangible property investment is used in the active conduct of a QOZB?
Facts and circumstances. There's no set method, but you'll need to present some documents showing the IP you own in a QOZB is being put to work in the business itself. I have two things to add on this front. If you're thinking of trying to game the system by putting unrelated IP into the QOZB so you can get tax-free treatment on it while technically meeting the statutory and regulatory requirements, don't do it. If the IRS catches wind of it, they'll apply the anti-abuse rules.
There is a lot of law on what is an active trade or business.
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