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Opportunity Zone Consulting

Our Opportunity Zones Tax Services team can help you navigate the allowable tax benefits, affording you the extra cash to invest in future developments.

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Unlock Tax Savings and Drive Community Growth With Opportunity Zones — Now Enhanced by 2025 Tax Reform 

Opportunity Zones (OZs) are federally designated, economically distressed areas that offer unique tax benefits to encourage private investment and community revitalization. By reinvesting eligible capital gains into a Qualified Opportunity Fund (QOF), investors can: 

  • Defer recognition of capital gains on the sale of assets 
  • Permanently reduce a portion of deferred gains 
  • Eliminate tax on future appreciation of QOF investments held at least 10 years 

Cherry Bekaert’s Opportunity Zones Tax Services team helps investors, developers and fund managers maximize the powerful tax incentives of OZs. With the 2025 tax reform introducing permanent program enhancements, there is additional complexity and enhanced ways to align your investment strategy for long-term, tax-advantaged growth. The latest reforms modernize OZ investments going forward, while some legacy rules, such as the 2026 deferred gain inclusion, still apply to earlier investments.

2025 Tax Reform: What’s New for Opportunity Zones? 

P.L. 119-21, or the “One Big Beautiful Bill Act” (OBBBA), has reimagined the OZ landscape: 

  • Permanent Extension: The program is now permanent — no more 2026 sunset. 
  • Rolling Zone Designations: New OZs will be designated every 10 years, with the next cycle starting July 1, 2026, with an effective date of January 1, 2027 
  • Enhanced Incentives: Investors receive a 10% basis step-up after five years, and up to 30% for rural OZ investments.
  • Relaxed Improvement Requirements: Especially for rural zones, making it easier to qualify including a 50% Substantial improvement requirement 
  • Flexible Deferral: Gains invested after 2026 are deferred for five years from the investment date.
  • Continued 10-year Exclusion: Full exclusion of appreciation for investments held 10+ years remains intact. 

These changes create a more flexible and durable OZ framework, expanding investment opportunities while maintaining the long-term tax-free appreciation benefit investors value most.

Explore Key Changes Under OBBBA

 

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Article

Opportunity Zones Reimagined: How the 2025 Tax Reform Resets the Landscape for Community Investment

The 2025 tax reform introduces significant updates to Opportunity Zones, including new compliance rules, rural-focused enhancements and estate planning opportunities — positioning this year as pivotal for repositioning capital and driving long-term, tax-advantaged growth. 

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Our Opportunity Zone Services

1. Qualified Opportunity Fund Formation and Structuring

Build a compliant, efficient structure from day one. 

  • QOF and QOZB Entity Formation: Guidance on selecting, structuring and establishing the right entities for OZ compliance.
  • Strategic Structuring Support: Tailored strategies for real estate projects, operating businesses and multi-asset funds.
  • Qualification Assessments: Early-stage reviews to confirm whether a project or business meets OZ requirements.
  • Capital Deployment Planning: Assistance in aligning timing, fund flows and business plans with OZ rule requirements.

Contact Our OZ Consultants

2. Opportunity Zone Compliance and Testing

Stay audit‑ready with proactive, year‑round compliance.  

  • Quarterly and Annual Testing: Asset tests (90% for QOFs, 70% tangible property for QOZBs), income tests and documentation support. 
  • Working Capital Safe Harbor Management: Planning, oversight and documentation to ensure full utilization of the safe harbor. 
  • Tax Return Preparation: Federal and state tax filings for QOFs, QOZBs and related structures. 
  • Investor Reporting Support: Coordinated communications and reporting packages for fund managers and investor groups. 
  • Audit Preparation: Documentation and readiness support should IRS or state regulators inquire.

Contact Our OZ Consultants

3. Opportunity Zone Tax Planning and Modeling

Understand the full tax impact of each OZ investment decision. 

  • Rollover Eligibility Analysis: Determine which capital gains qualify and the most advantageous timing. 
  • Comparative Modeling: OZ vs. 1031 exchanges, traditional real estate, business investments or alternative strategies. 
  • 2026 Inclusion Event Planning: Model tax exposure tied to the mandatory deferred gain recognition. 
  • Cash Flow and NPV Projections: Evaluate long-term investment outcomes with tax impacts  factored in. 
  • Exit Strategy Planning: Evaluate 10- year step-up benefits, potential sale scenarios and long-term tax outcomes.

Contact Our OZ Consultants

4. Valuation and Documentation

Protect your tax position with credible valuations and defensible documentation. 

  • Fair Market Value (FMV) Valuation Coordination: Support for the December 31, 2026, inclusion event and annual reporting. 
  • Valuation Review and Interpretation: Guidance on how FMV affects tax liabilities, documentation and investor communication. 
  • IRS-ready Documentation: Organized, defensible support files to withstand audit scrutiny. 
  • Substantiation for Operating Businesses: Assistance gathering the evidence needed to support QOZB qualification and ongoing compliance. 

Contact Our OZ Consultants

5. Incentive Optimization

Maximize returns by layering OZ benefits with other federal and state incentives.  

  • Credit Stacking Strategy: Identify and combine OZ incentives with Historic Tax Credits, New Markets Tax Credits and state or local programs. 
  • Scenario Modeling: Demonstrate how credits and incentives improve project feasibility and investor returns. 
  • Application and Documentation Support: Assist with navigating credit programs, eligibility and compliance requirements. 

Contact Our OZ Consultants 

1. Qualified Opportunity Fund Formation and Structuring

Build a compliant, efficient structure from day one. 

  • QOF and QOZB Entity Formation: Guidance on selecting, structuring and establishing the right entities for OZ compliance.
  • Strategic Structuring Support: Tailored strategies for real estate projects, operating businesses and multi-asset funds.
  • Qualification Assessments: Early-stage reviews to confirm whether a project or business meets OZ requirements.
  • Capital Deployment Planning: Assistance in aligning timing, fund flows and business plans with OZ rule requirements.

Contact Our OZ Consultants

2. Opportunity Zone Compliance and Testing

Stay audit‑ready with proactive, year‑round compliance.  

  • Quarterly and Annual Testing: Asset tests (90% for QOFs, 70% tangible property for QOZBs), income tests and documentation support. 
  • Working Capital Safe Harbor Management: Planning, oversight and documentation to ensure full utilization of the safe harbor. 
  • Tax Return Preparation: Federal and state tax filings for QOFs, QOZBs and related structures. 
  • Investor Reporting Support: Coordinated communications and reporting packages for fund managers and investor groups. 
  • Audit Preparation: Documentation and readiness support should IRS or state regulators inquire.

Contact Our OZ Consultants

3. Opportunity Zone Tax Planning and Modeling

Understand the full tax impact of each OZ investment decision. 

  • Rollover Eligibility Analysis: Determine which capital gains qualify and the most advantageous timing. 
  • Comparative Modeling: OZ vs. 1031 exchanges, traditional real estate, business investments or alternative strategies. 
  • 2026 Inclusion Event Planning: Model tax exposure tied to the mandatory deferred gain recognition. 
  • Cash Flow and NPV Projections: Evaluate long-term investment outcomes with tax impacts  factored in. 
  • Exit Strategy Planning: Evaluate 10- year step-up benefits, potential sale scenarios and long-term tax outcomes.

Contact Our OZ Consultants

4. Valuation and Documentation

Protect your tax position with credible valuations and defensible documentation. 

  • Fair Market Value (FMV) Valuation Coordination: Support for the December 31, 2026, inclusion event and annual reporting. 
  • Valuation Review and Interpretation: Guidance on how FMV affects tax liabilities, documentation and investor communication. 
  • IRS-ready Documentation: Organized, defensible support files to withstand audit scrutiny. 
  • Substantiation for Operating Businesses: Assistance gathering the evidence needed to support QOZB qualification and ongoing compliance. 

Contact Our OZ Consultants

5. Incentive Optimization

Maximize returns by layering OZ benefits with other federal and state incentives.  

  • Credit Stacking Strategy: Identify and combine OZ incentives with Historic Tax Credits, New Markets Tax Credits and state or local programs. 
  • Scenario Modeling: Demonstrate how credits and incentives improve project feasibility and investor returns. 
  • Application and Documentation Support: Assist with navigating credit programs, eligibility and compliance requirements. 

Contact Our OZ Consultants 

Ready To Unlock the Benefits of Opportunity Zones?

Our professionals can help you navigate complex regulations, maximize tax incentives and drive sustainable economic growth. Don’t miss out on these enhanced opportunities — contact Cherry Bekaert’s OZ team today to get started.  

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Why Choose Cherry Bekaert as Your Opportunity Zone Advisor?

  • Deep Technical Knowledge

    With years of specialized experience in OZ regulations, our team brings an unmatched depth of technical knowledge to every engagement. We help clients confidently navigate IRS rules, compliance requirements and complex OZ structuring decisions, verifying that investments are optimized and fully aligned with federal guidance. 

  • End-to-End Guidance

    We simplify the OZ process by delivering all essential services under one roof. From initial feasibility and entity structuring to annual compliance, tax filings and investor reporting, our integrated approach eliminates the need for multiple vendors. You get one cohesive, coordinated team dedicated to making your OZ strategy straightforward and efficient.

  • Maximize Tax Incentives

    Our goal is to help you unlock the most valuable tax outcomes available through OZs. We identify and structure opportunities to amplify savings through a wide range of federal and state incentive programs, including New Markets Tax Credits, Historic Tax Credits, state OZ incentives and other synergistic credit opportunities. This results in stronger project feasibility, enhanced returns and long-term tax advantages.

  • Customized Solutions for Every Investor Type

    Every investor profile is unique, and so is our approach. Whether you are a QOF, project sponsor, real estate developer, operating business or individual investor, we tailor our strategies to your goals, risk tolerance and timeline. Our flexible service model allows you to get the right support no matter the size or stage of your investment.

  • Proven Results and Industry Recognition

    Our OZ team has advised on hundreds of projects nationwide, guiding billions in investment across real estate, operating businesses and community development ventures. Clients rely on us not only for our technical knowledge but for our track record of delivering measurable outcomes. Case studies consistently highlight accelerated timelines, increased credit monetization and reduced compliance exposure.

  • Risk Mitigation and Compliance Assurance

    Opportunity Zone compliance is complex, but we make it manageable. Our advisors provide proactive risk management through semi-annual testing, safe harbor guidance and meticulous documentation practices. Our team helps your project stay compliant with IRS requirements at every stage, reducing audit risk and protecting long-term investment value.

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Case Study

Cherry Bekaert Helps Real Estate Firm Save $1M in Taxes

Discover how Cherry Bekaert's tax services helped a real estate company save $1M in taxes through qualified opportunity fund strategies and reinvestment.

Read Story

Our Process for Opportunity Zone Compliance

Our proven process enables your Qualified Opportunity Fund (QOF) and Qualified Opportunity Zone Business (QOZB) investments to meet IRS requirements while maximizing tax benefits. Here’s how we guide you every step of the way. 

  • Phase 1: Opportunity Zone Fund Structuring and Compliance Setup

    • Review QOF objectives and identify potential compliance issues. 
    • Coordinate with legal advisors to structure funds and partnerships correctly. 
    • Validate contributions qualify under IRS rules (qualifying gain, timing, investor type). 

  • Phase 2: Qualified Opportunity Zone Investment Planning

    • Plan investments in assets or businesses within Opportunity Zones. 
    • Address structural issues for QOZBs and investor partnerships. 
    • Evaluate additional funding sources like tax credits and equity options. 

  • Phase 3: Opportunity Zone Compliance Monitoring and Testing

    • Perform semiannual asset and income compliance testing. 
    • Prepare annual tax filings and Form 8996 reporting for QOF and QOZB. 
    • Resolve transaction issues during development or startup phases. 

Is Your Opportunity Zone Investment Underperforming?

A credible, defensible valuation could reduce your recognized gain and lower your 2026 tax burden on legacy OZ investments made prior to reform. If your QOF investment has declined in value, or you’re unsure where it stands, now is the time to get clarity. Reach out to our valuation team to assess your fair market value and protect your tax position before key deadlines.

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How Opportunity Zone Investors Can Prepare for the 2026 Gain Deferral Expiration

Explore how Opportunity Zone investors can prepare for the expiration of capital gains deferral, from fair market valuation to liquidity planning.

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Opportunity Zones 2.0: Navigating the New Tax Landscape

Explore key updates to OZs introduced in the 2025 tax reform. Whether you're an investor, developer or fund manager, this session clarifies how the new legislation impacts eligibility, timelines, and compliance. Gain the clarity and confidence you need to navigate the evolving OZ landscape.

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Our Professionals

Connect With Us

Mark H. Cooter

Real Estate, Construction & Hospitality Industry Leader

Partner, Cherry Bekaert Advisory LLC

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Andy Ackermann

Tax Services

Partner, Cherry Bekaert Advisory LLC

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Catherine Bazley

Tax Services

Partner, Cherry Bekaert Advisory LLC

Opportunity Zones Frequently Asked Questions (FAQs)

OZ consultants help investors, funds, and businesses navigate the complex requirements of the OZ program as well as maximize benefits to themselves and their investors. Services include:

  • Formation and structuring
  • Transaction advisory and modeling 
  • Tax planning and compliance 
  • Community impact and development strategy 
  • Regulatory and legislative analysis  
  • Accounting and fund administration

OZ consulting services can be a strong fit for a variety of investors and organizations involved in OZ activity, including:

  • Investors or entities with significant realized capital gains seeking to defer or reduce their tax liability through OZ investments.
  • Real estate developers planning projects in designated OZs who need to structure deals to meet QOF and QOZ property requirements.
  • Fund managers forming or managing QOFs that must comply with complex statutory and regulatory requirements.
  • Operating businesses seeking to attract OZ capital or ensure their activities qualify as a “qualified opportunity zone business.”
  • Family offices, private equity and venture capital firms looking to leverage OZ incentives as part of broader investment strategies.

Given the complex, evolving nature of OZ rules, working with a CPA firm helps mitigate the risk of noncompliance, including the loss of tax benefits or penalties. Experienced advisors provide guidance on proper structuring, compliance testing, tax filings, valuation coordination and documentation. Additionally, partnering with tax consultants also protects tax benefits, reduces audit and regulatory risk, and helps clients make informed decisions to optimize returns.

Contact Our Opportunity Zones Consultants