I had a sale involving Capital Gains about 151 days ago. While there is a property that I like, the one I love, cannot close within the 180 window. I have a small Opportunity Zone Fund - can I simply invest the capital gain from my recent sale into my LLC and then purchase the 'replacement' property in a couple of months? Grateful for any feedback.
Holly— as long as your recently realized capital gains are placed in your QOF within 180 days of realization you’ll get the deferral and be eligible for the other OZ benefits. Your QOF has a separate timeline for deploying the capital and just has to meet the 90% threshold every 6 months, so that should work with your anticipated closing timeline.
Unless I'm missing something, your 1031 Exchange funds have to go into a "like property" within the 180-day window. You can't transfer them somewhere else and then spend them later. Find a property before you lose the benefit.
Thank You Scott! That was exactly the answer I was hoping for!!!
Does your LLC have any members other than you? The reason I ask is that it must be taxed as a partnership or corporation to be able to qualify as an OZ Fund.
My understanding the gains must be realized in order to invest in Opportunity Zones, which entails having a tax document for these gains from 2018.
Thank you Bryan. You are correct. It is not a single member LLC.
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