First post here! I have a question regarding investing in a QOZ. The capital gain I am planning to defer was from a personal account where I sold equities. Can the QOZ investment be made by subscription agreement using an LLC owned by my wife and I or does the investment have to be made by me as an individual instead of an entity in order to defer capital gains taxes? TIA
You need to subscribe in your personal name. As a practical matter, the deferral is recorded using code z to remove the realized gain from the tax return of the person/entity making the OZ investment. Since the LLC does not have any capital gain to defer, you wouldn't be able to record a gain deferral and the investment would not qualify for OZ benefits.
Thanks @Scott McIntosh ! Makes sense.