Ask a CPA: Top 15 Opportunity Zone Tax Questions Video
by Erik Hayden, on Nov 30, 2020 1:16:13 PM
At Urban Catalyst, we’re constantly looking for ways to help investors make savvy investment decisions. That’s why our SVP of Investor Relations, Morgan Mackles, recently sat down with CPA Nick Gibbons to discuss the Top 15 Opportunity Zone Tax Questions.
As Partner and Director of Tax at Armanino, Nick has more than 17 years of experience in corporate taxation, Opportunity Zones and cryptocurrency. In this video, he offers his insights into the most commonly asked tax questions by investors about the Opportunity Zone tax program.
In addition to giving a rich overview of the genesis of Qualified Opportunity Zones, Nick also went into great detail about the IRS code which covers Opportunity Zones.
Watch the video to get answers to the following questions:
- What’s the origin of the Opportunity Zone Tax Program and where is it within the IRS code?
- What are the main tax benefits?
- Why capital gains and not ordinary income?
- Why does the IRS have a 180-day deadline to make an investment?
- What happens with the taxes for an initial capital gain?
- What happens if original gain was STG instead of LTG?
- How do the losses work? (early years)
- How does depreciation work? (middle and end years)
- Is the refi distribution taxable? Why? How exactly does this work?
- When the tax comes due on the original invested gain may I offset the gain with capital losses, even if they're incurred post the investment??
- Can you provide specifics on the 10 year minimum hold, and what they entail? What was IRS reasoning?
- How does the tax work AFTER the 10 year seasoning is done?
- What is the tax implication for the investor of partnership OZ vs> REIT OZ?
- California is a non-conforming state to the OZ legislation- how does that affect in-state and out-of-state investors?
- What tax forms do investors need to submit to let the federal government, the state government know that they've invested in a Qualified Opportunity Fund?
Have questions we didn’t cover? Contact us and a member of our team will be happy to help.
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The statements, views, and opinions expressed herein are those of the individuals making the statements and do not necessarily reflect the official policy or position of Urban Catalyst Manager LLC or any investment sponsored by Urban Catalyst LLC and are provided for informational purposes only and are not intended to be, nor should be construed or used as financial, legal, tax or investment advice, nor should this information be used or considered as an offer to sell or a solicitation of any offer to buy any interest in Urban Catalyst Opportunity Fund I LLC (the “Fund”), an investment sponsored by Urban Catalyst LLC (the “Sponsor”).
THIS MATERIAL IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY SECURITIES. THE OFFERING AND SALE OF INTERESTS IN URBAN CATALYST OPPORTUNITY FUND I LLC (“URBAN”) IS BEING MADE ONLY BY DELIVERY OF URBAN’S PRIVATE PLACEMENT MEMORANDUM (“PPM”), CERTAIN ORGANIZATIONAL DOCUMENTS, SUBSCRIPTION AGREEMENT AND CERTAIN OTHER INFORMATION TO BE MADE AVAILABLE TO INVESTORS (“OPERATIVE DOCUMENTS”) BY URBAN’S SPONSOR. ONLY ACCREDITED INVESTORS CAN INVEST. PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. INVESTMENTS IN SECURITIES ARE SPECULATIVE, INVOLVE A HIGH DEGREE OF RISK, AND ARE NOT SUITABLE FOR ALL INVESTORS. PROSPECTIVE INVESTORS SHOULD CONSULT THEIR OWN TAX AND LEGAL PROFESSIONALS PRIOR TO MAKING INVESTMENT DECISIONS.