Definition Of Qualified Opportunity Zone Business Property

The term qualified opportunity zone business property means tangible property used in a trade or business of the qualified opportunity fund if.

Definition of qualified opportunity zone business property. A qof is either a corporation or a partnership established for the purpose of investing in qualified opportunity zone property qoz property as defined below other than another qof. And so if you look at that a qualified opportunity zone business the definition of that is that that business has to have 70 of its assets in qualified opportunity zone business property which once again can either be you know new use or substantially improved real property or 70 of its physical assets that would be like furnitures fixtures and equipment where leasehold interest have to be inside of an opportunity zone. Qualified opportunity zone business property. Qualified opportunity zone business property is tangible property acquired by the qof after december 31 2017 and either the original use of such property needs to start with the qof investment or the qof must substantially improve the property.

Qualified opportunity zone property includes newly issued stock partnership interests or business property in a qualified opportunity zone. A qof that operates a business directly and not through a subsidiary must hold 90 of its assets as qozbp. To become a qualified opportunity fund an eligible corporation or partnership can use the self certification process. At least 90 of the assets of a qof must be qoz property.

The april proposed regulations also clarified the definition of qualified opportunity zone business property qozbp by providing details of the requirements for leased property to be qozbp and answered several outstanding questions regarding when raw land qualifies as qozbp. Qualified opportunity funds qof are uniquely positioned to invest in qualified opportunity zone qoz business property in a way that may change strategies for investors across the u s. 31 2017 the original use of such property in the qualified opportunity zone commences with the qualified opportunity fund or the qualified opportunity fund substantially improves the property and.