No. Establish your written plan within the first six months.
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What’s included in the 5% test for QOZBs?
Does the 5% test prevent ground-up development projects?
Answers
The 5% test does not prevent ground-up development. The 5% test has to do with non-qualified financial property, which is designed to prevent QOZBs from owning mere investment assets, rather than business assets. The rules are a bit strange, but they famously have a carve-out for working capital.
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