As with any investment, reasonable steps, i.e. due diligence, must be taken. Opportunity Zones offer significant tax incentives for those investing in eligible properties, but it’s also important to note that there are several and very unique due diligence requirements that you and/or your business must evaluate before moving forward.
GBQ offers services for Opportunity Zones across all property types, and we can help you get started in the right direction.
- Review and/or assistance with preparation of Qualified Opportunity Zone Business financial projections, including analysis of:
- Working capital
- 70% Qualified Opportunity Zone Business Property requirement
- 50% gross income requirement
- Related party issues
- IRC § 163(j) interest expense limitation
- Applicability of IRC § 199A
- State and local tax (SALT) analysis
- Analyze and stress test the assumptions used in projects
- Review and comment on draft term sheets and admission documents for contemplated Qualified Opportunity Zone Business investments
- Assistance with developing documentation required under Prop Reg § 1.1400Z2(d)-1(d)(5)(iv) for reasonable amount of working capital safe harbor