Everything to know about Qualified Opportunity Zones in the United States

So… what exactly is an Opportunity Zone?

Opportunity Zones are economically-distressed communities where new investments, under specific conditions, might be eligible for preferential tax treatment. Districts are eligible to be Opportunity Zones if they have been submitted for that classification by the state and that submission has been certified by the Secretary of the U.S. Treasury via his delegation of authority to the Internal Revenue Service.

What is the purpose of Opportunity Zones?

Opportunity Zones serve as an economic development tool. Furthermore, they are modeled to stimulate economic development and higher the job rate in distressed communities.

Have Opportunity Zones been around for a long time?

No, they were added to the tax code by the Tax Cuts and Jobs Act on December 22, 2017. The first set of Opportunity Zones, covering sections of 18 states, were selected on April 9, 2018. Opportunity Zones have now been appointed covering sections of all 50 states, five U.S. territories and the District of Columbia.

What is a Qualified Opportunity Fund?

A Qualified Opportunity Fund (QOF) is an investment vehicle that is designed as either a partnership or corporation for investing in qualified property that is in a Qualified Opportunity Zone.

How do Opportunity Zones stimulate economic development?

They are designed to boost economic development by providing tax benefits to investors. First off, investors can postpone tax on any prior gains invested in a Qualified Opportunity Fund (QOF) until the earlier of the date on which the investment in a QOF is sold or exchanged, or December 31, 2026. If the QOF investment is held for more than 5 years, there is a 10% exclusion of the postponed gain.  If held for longer than 7 years, the 10% becomes 15%. Next, if the investor holds the investment in the Opportunity Fund for at least ten years, the investor is qualified for growth in basis of the QOF investment equal to its fair market value on the date that the QOF investment is sold or exchanged.

Do I have to live in an Opportunity Zone to gain the tax benefits?

The answer is no. You may get the tax benefits, even if you don’t work, live or have a business in an Opportunity Zone. You just need to invest a recognized gain in a Qualified Opportunity Fund and elect to defer the tax on that gain.

Is there a list of Opportunity Zones obtainable?

Definitely. This list can be found at Opportunity Zones Resources and in the Federal Register at IRB Notice 2018-48.  In addition, a visual map of the census tracts designated as Qualified Opportunity Zones can be found at Opportunity Zones Resources.

I want to form a Qualified Opportunity Fund. Can  I access a list of Opportunity Zones available in which the Fund can invest?

Yes, this list can be found at Notice 2018-48.

Is it possible for a limited liability company (LLC) to be an Opportunity Fund?

Absolutely. A LLC that decides to be treated as a partnership or corporation for federal tax purposes can classify as a Qualified Opportunity Fund.

How does a partnership or corporation get certified as a Qualified Opportunity Fund?

An eligible partnership or corporation self-certifies by filing Form 8996, Qualified Opportunity Fund, with its federal income tax return. Early-release drafts of the form and instructions are posted, with final versions due in December. The return with Form 8996 has to be filed timely, taking extensions into consideration.

How can I get more information about Opportunity Zones?

Check out this article for more details on Opportunity Zones.

The Treasury Department and the Internal Revenue Service will be giving more details, including further legal guidance, on this new tax benefit.

Need help with environmental consulting, Phase I Environmental Site Assessments, Property Condition Assessments or Phase II Subsurface Investigations?

UES Consulting and our diverse team know how thorough, time-sensitive Phase I Environmental Site Assessments and Property Condition Assessments are and can help the affair run effortless and finish on time. If you are searching for a company to partner with on your commercial real estate transactions of any sort, look to our in-house engineers and environmental consultants to relieve the stress of environmental issues and mitigate risks.

Qualified Opportunity Zones in Kansas City

Did you know that 52 million Americans (1 in 6) live in economically distressed communities? This is a major problem that Congress recently took a step to fix. Thus, Opportunity Zones were created in the Tax Cuts and Jobs Act of 2017.

Opportunity Zones are an innovative, flexible, and bipartisan solution for catalyzing private sector-led economic growth. In addition, they aim to connect low-income communities with much-needed capital.

In exchange, investors get a graduated series of federal tax incentives tied to long-term holdings.

Phase I Environmental Site Assessments, tax incentives, efficient company, efficient PCA'S, quick turnaround time, efficient assessments, quick assessments, opportunity zones, qualified opportunity zones, opportunity zones in Kansas City, Missouri qualified opportunity zones, Kansas qualified opportunity zones, Environmental consulting help Kansas City, Environmental consulting help Missouri, end of year, end of year deadline, get help, strict deadlines, efficiency, Engineering consulting Kansas City, Phase I Environmental Consulting, Phase 1 Environmental Consulting, Phase II Environmental Consulting, Phase 2 Environmental Consulting, property condition assessments, property condition assessments Kansas City, PCA's, PCA, contact us, reach out

Lastly, information provided by Ruben Alonso President of AltCap and Korb Maxwell with Polsinelli. 

UES Consulting and our team are experts in Phase I Environmental Site Assessments and Property Condition Assessments and can help your projects run smoothly and close on time. If you are looking for a company to join together with on your commercial real estate transactions of any type, look to our in-house engineers and environmental consultants.

 

UES joins CREW KC!

UES is proud to have our Chief Marketing Officer, Jamie Taylor, as a new member to CREW KC in 2018. Along with her member status, Jamie has also joined the program committee. She wants to lend her knowledge of conference/meeting planning and educational events to the local chapter. As an event sponsor, UES has been a long-time friend and supporter to the organization. We believe in the networking opportunities and educational offerings provided to the women working in commercial real estate are invaluable in promoting equality and advancement.

CREW KC is a non-profit organization of commercial real estate professionals affiliated nationally through membership in the CREW Network. Thus providing opportunities for networking, education, leadership development and civic/philanthropic involvement. CREW KC promotes the highest standards of ethics and integrity. They seek to positively influence the direction of Kansas City’s commercial real estate industry and community.

Finally, we look forward to a year of making new connections and growing in our support of CREW KC!

2018 CCIM Kansas City Sponsorship

Kansas City boasts an active, vibrant chapter of Certified Commercial Investment Members, (CCIM). This elite corps of CCIMs includes brokers, leasing professionals, investment counselors, asset managers, appraisers, corporate real estate executives, property managers, developers, institutional investors, commercial lenders, attorneys, bankers, and other allied professionals.

UES has spent nearly 30 years working with CCIMs across the country on a variety of transactions. Therefore, it is our honor to be trusted by these distinguished professionals to get the “job done right.” As well as in a timely manner when their transactions call for environmental report assessments and engineering consulting. We specialize in providing the top professionals with the highest level of service in environmental and engineering consulting.

With our years of partnership with CCIMs, UES is proud to sponsor our local CCIM Kansas City chapter as an annual sponsor for 2018. Our team will be joining the leaders in our community for conversations about important local developments and learning about new trends in the industry. Last but not least, having a little fun, right alongside our many clients and friends.

Insights into Energy Efficiency

Importance of Energy Efficiency

Energy efficiency has never been more important as we look to conserve our valuable, depleting natural resources and continue to fuel a growing society. A survey completed in late 2010 highlighted in the Bloomberg Business week outlines concerns and usage as we all look forward and also work towards more efficiency in our lives, our construction and our growing sustainability.