Treasury Comment Introducing Approach for Purchasers of Non-Qualifying QOF Interests to Have Qualifying QOF Interests

Qualified Opportunity Zones Alert

Date: July 01, 2019

Publication: Thompson Hine

Can a Qualifying Opportunity Zone Fund (QOF) structure be established with non-capital gain dollars and then such nonqualifying interests be sold at any future point before 2027 by the original investors to persons who have capital gain dollars and become eligible qualifying interests?  According to a recent statement by a Treasury attorney at a Federal Bar Association meeting, the answer would be yes.  If accurate and confirmed by future clarifying guidance, this raises a series of questions and additional opportunities. Read more.

For more information, please contact Frank Ferrante, Alexis Kim, or any member of the firm’s Qualified Opportunity Zones group.

Francesco A. Ferrante
Thompson Hine LLP
Phone: 937.443.6740
Mobile: 937.470.0598

Alexis J. Kim
Thompson Hine LLP
3900 Key Center
127 Public Square
Cleveland, OH 44114
Phone: 216 566-5732
Mobile: 216-385-3493