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A quick update. The opportunity zone investment I’m looking at does not require a 1031 exchange but rather a form that’s filed with your federal taxes in April deferring capital gains tax. The product I’m looking to invest in is from Morgan Stanley to invest as part of a group to build within the opportunity zones with several federal tax incentives over 10 years.
To me, opportunity zones really only make sense to developers because you have to put at least as much into the property as you paid for it (at leas the last time I looked at it)—I’m sure there are funds that do this. But to defer your gain on a 1031 you need to move fast—you should have probably picked out properties to 1031 into before you sold the property you did, but I don’t know your entire saturation. Plus if anyone other than a qualified intermediary touched the gain after the property was sold (this includes your accountant and lawyer) you’ve likely lost the ability to take advantage of a 1031 exchange.
Tbh I think you’re too small for QOZ (compliance cost and legal) unless there is some ETF or pass through fund that exists.
1031 you could def do but you will be on a clock, and there are many small firms that can do the paperwork. Just make sure you know approximately which property you are going to buy, etc.
Thank you. I have the 1031 paperwork for closing and this is a fund type for gains only.
OP - I am in the same boat. Let me know if you’d like to brainstorm. We can talk this weekend