Meeting the Tests for a Qualified Opportunity Zone Business (“QOZB”)

Join Michael Elliot, Tax Director, and Russ Nash, former Tax Senior Manager, for a deep dive on the five basic tests required for a business to qualify as a QOZB:

1. A trade or business for which substantially all (70 percent) of its tangible property (owned or leased) is QOZB property
2. At least 50 percent of the business’s total gross income must be derived from the active conduct of a business in the QOZ
3. A substantial portion (40 percent) of the business’s intangible property is used in the active conduct of the QOZB
4. Non-qualified financial property must be less than 5 percent of the average of the aggregate unadjusted basis of the business’s property
5. “Sin” businesses are prohibited

Listen to the other podcasts in our OZ Fund Series:

• Part 1 – Opportunity Zone Overview
• Part 2 – Opportunity Zone Impact on Real Estate
• Part 3 – Operating a Qualified Opportunity Zone Business (“QOZB”)
• Part 5 – Optimizing Alternative Capital Sources
• Part 6 – Panel Discussion: Opportunities & Pitfalls in Your Opportunity Zone (“OZ”) Structuring