It will disqualify you. The benefits come from investment in a QOF, not a QOZB. The law does not allow you to invest in a QOZB directly and still get tax benefits.
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How can I make an investment directly into an QOZB?
Can I bypass the QOZF and directly invest in a QOZB? Could this disqualify me for the tax benefits of the program?
Answers
It is only the contribution of deferred gains into a qualified opportunity fund that allow the taxpayer to take advantage of the gain deferral and future step up in basis. Any funds invested directly into a QOZB do not benefit from the QOZ statute.
The investment must be done in a QOF to qualify.
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