Can vacant land bought seven months before the law went into effect still qualify with the existing purchasing LLC? Or does a new unrelated LLC have to purchase the land in order to qualify for an Opportunity Zone Fund?
No special rules for tech companies, but need to ensure that intangibles are used at least 40% for OZ purposes. OZ qualified property must be acquired post Dec. 31, 2017, even if vacant. A QOF or QOZ business can purchase more than 80% of the property, lease it or joint venture, provided the old owner owns less than 20% of the venture.
Nothing specific to tech, but there could be issues that are tech sensitive.
Best to transfer into a new LLC. This can be done tax free.
You can lease the Opportunity Zone property to a biz or QOF.
There are no special rules for technology companies. They need to follow the rules of any Opportunity zone business. These rules are: An Opportunity Zone (OZ) business only needs to have 70% of its tangible assets be qualified OZ assets that are located in the OZ. To be a qualified Opportunity Zone business, the business must also pass one of the following tests: 50% of revenues must generated from or inside the Opportunity Zone or 50% of revenues are generated to the Opportunity Zone; 50% of employee hours or wages paid are in the Opportunity Zone; 50% of management responsible for generating revenue must be inside the Opportunity Zone.
DISCLAIMER:the information found on this website is intended to be general information; it is not legal or financial advice. Specific legal or financial advice can only be given by a licensed professional with full knowledge of all the facts and circumstances of your particular situation. You should seek consultation with legal and financial experts prior to participating in any aspect relating to Opportunity Zones. Posting a question on this website does not create an attorney-client relationship. All questions you post will be available to the public; do not include confidential information in your question.