Qualified Opportunity Zones
Legal + Tax Planning
The lawyers of Dilendorf Law Firm help clients invest in New York City real estate through qualified opportunity funds (QOF). We leverage our extensive understanding of state and federal laws and expertise with real estate transactions to develop a highly tailored QOF strategy for every client.
Structured investment of Section 1231 gain, generated from the sale of real estate used in trade/business, in a two-tier qualified opportunity fund for purchasing and developing properties in NY
Consulted a client on obtaining a capital gain deferral after the sale of the client's digital currency portfolio by purchasing a development project in a qualified opportunity zone in Brooklyn, New York
Advised a group of private investors in connection with setting up a qualified opportunity fund for purchasing $10M development lot in Long Island City, New York
Advised a client on setting up a qualified opportunity zone business (restaurant) using capital gain proceeds from the sale of stock
Qualified opportunity funds are tax-advantaged investment vehicles created by the Tax Cuts & Jobs Act, enacted in December 2017. By reinvesting capital gains into a qualified opportunity fund within 180 days after the gains are realized, investors can defer recognition of those gains until as late as December 31, 2026.
If, when the deferred gains are recognized, the taxpayer has held the investment in the qualified opportunity fund for at least five years, he or she will only need to recognize 90% of the capital gains he or she deferred. If the taxpayer has held the investment for at least seven years, he or she will recognize only 85% of the deferred gains.
Additionally, if the taxpayer holds his or her investment in the qualified opportunity fund for at least 10 years, then any gain on that investment between purchase and sale will escape federal income taxation altogether.
These benefits are available for gains on all kinds of capital assets, including:
- Art and other collectibles;
- Automobiles, aircraft, and equipment;
- Bitcoin and other digital assets;
- Intellectual property and other intangible assets;
- Real estate; and
- Stocks, bonds, and other investments.
Comprehensive Services for Qualified Opportunity Funds in New York City
Investing in a qualified opportunity fund for New York City real estate requires establishing the fund, maintaining it, and selecting an appropriate property or properties to place within the fund and improve.
Our attorneys offer comprehensive QOF strategies and guidance at every step of the investment process.
Our services include:
- Explaining the QOF process to clients interested in benefiting from it;
- Assessing each client’s unique circumstances and goals to develop a qualified opportunity fund strategy custom-made for him or her;
- Forming corporations, partnerships, LLCs, or other entities to serve as the qualified opportunity fund, and drafting formation documents with the necessary provisions to ensure eligibility for the program;
- Assisting clients in funding QOFs using the capital gains to be deferred under the QOF program and other monies, if necessary;
- Working with real estate professionals to identify and assess prospective purchases within the qualified opportunity zones in the Lower East Side, Upper West Side, Long Island City, Bushwick, Bedford-Stuyvesant, South Queens, and elsewhere in New York City;
- Guiding clients’ qualified opportunity funds through the process of purchasing, improving, and eventually selling New York City real estate; and
- Ensuring compliance with tax and other laws and regulations with respect to the QOF
Contact Us to Learn More About Our Qualified Opportunity Fund Services
Send us an email or call 212.457.9797 to schedule a consultation at our Manhattan office