The Opportunity Zone Investment Tax Regime: Recent Legislative and Regulatory Developments You Should Know
Since its enactment in December 2017, the Opportunity Zone (OZ) tax benefit has emerged as a significant tool in encouraging businesses to invest in economically distressed areas in the U.S. While investors are taking advantage of the tax incentives, the regulatory paradigm is also evolving. In October 2018, proposed regulations were issued to provide guidance on how industry participants can move forward in this new landscape. As of this writing, the proposed rules on the eligibility of a business to take advantage of OZ benefits are already in the final stages of review.
Industry participants and their counsel should be aware of these regulatory developments to mitigate risks as they maximize OZ investment’s potentials.
Our panel of key thought leaders and practitioners will offer a discussion of the regulatory and legislative developments in the OZ Investment Tax Regime. This LIVE Webcast aims to help firms and their counsel better understand the recent trends and developments surrounding this significant topic. Speakers will also present key strategies and tips on how to avoid potential risks and legal pitfalls.
Key topics include:
- Opportunity Zone (OZ) Investment – Overview and Statistics
- Current Rules and Regulations
- Recent Developments
- Top Issues
- Legislative and Regulatory Outlook
- Best Practices
Akin Gump Strauss Hauer & Feld LLP
- What are the main tax benefits of the OZ Regime?
- Who is Eligible to Enter the OZ Regime?
- Good Asset Test
- Good Income Test
- Timing Considerations
Seyfarth Shaw LLP
Seyfarth Shaw LLP
- Treatment of carried interest and allocation of tax items in blended capital/carried interest investment.
- Section 1231 gain investment rules.
- Multi-asset vs single-asset QOFs. Gain exclusion by investors vs treatment on sale of interest in QOF.
- Midstream asset dispositions by QOFs.
- Aggregation vs asset-by-asset evaluation of “substantial improvement.”
- In-kind QOF investments and the “acquired by purchase” rule.
- Nonrecourse debt allocation: debt-financed distribution and special disguised sale rule.
- Original use — Placed in service date for newly constructed assets.
- Active conduct of a trade or business. Real estate vs non-real estate businesses.
- Inclusion events — everything except transfers by death and 721 contributions.
Chuhak &Tecson, P.C
- What are Opportunity Zones
- Why Were Opportunity Zones Created
- Planning Considerations Surrounding an Opportunity Zone Transaction
- How do Opportunity Zone transactions differ from a 1031 Like Kind Exchange
Who Should Attend:
- Business Managers
- Business Analysts
- Executive Board Members
- Business Development Managers
- Fund Managers
- Investment Advisers
- Financial Management Officers
- Tax Advisers
- Tax Consultants
- Other Related/Interested Professionals
Ron G. Nardini is a partner in the tax practice of Akin Gump Strauss Hauer & Feld LLP. Ron advises clients in a wide range of sectors and industries on domestic and international tax matters. He focuses primarily on the formation and operation of private equity, venture capital and hedge funds and their investments, with a particular focus on health care investment funds, entertainment and cross-border intangible property transactions.
Ron also advises clients with respect to the tax matters attributable to taxable or tax-free mergers and acquisitions, sales, and/or investments in private or public ventures. In addition, Ron works closely with creditors of financially troubled companies on a variety of tax issues attributable to their investment, including debt restructurings, repatriation and preservation, and/or utilization of net operating losses.
Ron G. Nardini is a partner in the tax practice of Akin Gump Strauss Hauer & Feld LLP. Ron advises …
John Napoli is co-managing partner of Seyfarth Shaw’s New York office and co-chairs the firm’s national Tax group. He practices federal, state and local taxation, advising public and private clients on tax issues relating to corporate mergers and acquisitions, international transactions, restructurings, consolidations, financing, real estate (including REITs), tax free like kind 1031 exchanges, subchapter S corporations, opportunity zones, partnerships, joint ventures, and limited liability companies. Mr. Napoli structures tax-efficient real estate transactions, including formation, operation and liquidation of REITs and UPREITs. He represents clients before the IRS, U.S. Tax Court, and state authorities on controversial matters.
An active member of IMN, NAREIT, and Real Estate Roundtable, he is called a “trusted real estate attorney” and key individual by The Legal 500. Mr. Napoli has a 20-year Martindale Hubbell AV rating, has been selected for Super Lawyers–NY Metro every year since 2006, and was included on NACD’s “Directorship 100” list of “people to watch” in corporate America.
John Napoli is co-managing partner of Seyfarth Shaw’s New York office and co-chairs the firm’s national Tax group. He practices …
Steven Meier is chair of Seyfarth’s Corporate Department and co-chair of the firm’s Tax Practice. He is a deal lawyer with broad experience in designing and implementing U.S. domestic and cross-border corporate and real estate transactions. Mr. Meier is active in the capital markets industry, where he advises clients in the design, implementation and monetization of traditional and alternative real estate investment programs. His mergers and acquisitions practice involves counseling strategic and financial buyers and entrepreneurs on the corporate and tax aspects of domestic and cross-border business acquisitions and dispositions.
Mr. Meier has been recognized by The Legal 500 for his tax and mergers and acquisitions practices, and he is a frequent speaker on tax and business issues in real estate securities programs and mergers and acquisitions transactions.
Steven Meier is chair of Seyfarth’s Corporate Department and co-chair of the firm’s Tax Practice. He is a deal lawyer …
Leader of the firm’s Real Estate practice group, Kevin Coyne represents national franchises, restaurants, bars and professional practices and has substantial experience negotiating office, retail and industrial leases at the national and local levels for landlords and tenants. Priding himself on the personal attention he brings to every transaction, he crafts meticulous documentation tailored to align with his client’s present and future business needs and goals. He is a frequent presenter of commercial real estate trends such as Opportunity Zones where he discusses the benefits they provide to investors and follows with the requirements needed to create a Qualified Opportunity Zone Fund. Serving as a council member for the city of Naperville has given Kevin a unique perspective and constructive insight for clients facing municipal issues in Chicagoland.
Leader of the firm’s Real Estate practice group, Kevin Coyne represents national franchises, restaurants, bars and professional practices and has …
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Method of Presentation:
On-demand Webcast; Group-Internet Based
General knowledge of tax laws
NY Category of CLE Credit:
Areas of Professional Practice
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About Akin Gump Strauss Hauer & Feld LLP
Akin Gump is a leading global law firm providing innovative legal services and business solutions to individuals and institutions. We are one of the world’s largest law firms, with more than 900 lawyers and professionals in 21 offices. Our firm’s clients range from individuals to corporations and foreign governments.
We were founded in Texas in 1945 by Robert Strauss and Richard Gump, with the guiding vision that commitment, excellence and integrity would drive the success of the firm. We incorporated those qualities into the firm’s core values as we grew into an international, full-service law firm positioned at the intersection of commerce, policy and the law. Our goal in every engagement is to offer a level of client service that not only meets but anticipates our clients’ needs and exceeds their expectations. From reputational defense of headline-makers to down- and midstream energy investments, from precedential class action dismissals to protection of terrorism’s victims, we serve clients in over 85 practices that range from the traditional, such as litigation and corporate, to the contemporary, such as climate change and cybersecurity. Our lawyers, many of them with years of experience in the boardroom, on the bench and in the halls of government, collaborate across borders and practice areas to provide comprehensive counsel.
About Seyfarth Shaw LLP
At Seyfarth, we are leading the way in delivering legal services more effectively, more efficiently, and more transparently. We are a full-service firm with more than 850 attorneys and 15 offices in the United States, London, Shanghai, Hong Kong, Melbourne, and Sydney, offering a national platform and an international gateway to serve our clients’ changing business and legal needs in corporate, employee benefits, employment, litigation, and real estate. Seyfarth attorneys provide thoughtful, strategic, practical legal counsel to clients of all sizes across all industries, delivering excellent legal service, sophisticated technology and process improvement solutions. Our clients range from Fortune 100 to midsize companies, and include publicly traded and privately held companies and various types of funds.
About Chuhak &Tecson, P.C
For over 30 years, Chuhak & Tecson, P.C. has provided its clients with highly accessible legal advisors and affordable service. Its main office is in Chicago, with a satellite office in New York City, putting it in a position to fully serve its clients across the United States. The firm’s 69 attorneys provide broad experience in 12 practice areas, including real estate. Chuhak & Tecson also counsels clients in such areas as corporate transactions, succession planning, employment, employee benefits, tax, estate planning and litigation, including aviation litigation. It also represents healthcare organization and not for profits and provides probate, condominium and banking legal services. More details can be found at chuhak.com.