Blank Rome Establishes Opportunity Zone Team to Guide Investors and Real Estate Professionals
Qualified Opportunity Zone Funds Create Tremendous Investment Opportunities
Individuals and corporate investors have a significant opportunity to invest their capital gains on what is referred to as Qualified Opportunity Zone Funds, or funds designated to invest in geographic “Opportunity Zones” or “O-Zones.” Created by the 2017 New Tax Law, these zones encompass specific cities, villages, or hamlets that are experiencing socioeconomic distress and would benefit from investment.
Through the designation, these communities now have a mechanism that is designed to drive long-term private investment to them in multiple areas: business, industry, real estate, and development. Simultaneously, investors who choose to invest in the funds, will benefit through the deferred, reduced, and even exclusion from federal tax liability on the sale of appreciated assets if they place their gains into these funds, which then channel pooled capital into equity investments in small businesses and real estate in distressed communities. Blank Rome’s attorneys view the new fund as a win-win for the investors and the communities that need the additional boost.
In response to these investment opportunities, Blank Rome established an Opportunity Zone team with attorneys who are collectively focused on tax, fund formation, securities, real estate, and corporate law matters to help our clients navigate the laws associated with Opportunity Zones and benefit from the significant opportunity to invest their capital gains.
Our multidisciplinary team of attorneys regularly helps individuals, corporate investors, and real estate professionals understand the legal requirements and processes to obtain tax credits, as well as techniques to ensure deferral reduction or exclusion of capital gains in Qualified Opportunity Zone Funds.
Leading the charge is seasoned tax attorney, Michael I. Sanders, who has spent his entire career focused on tax credits (federal, state, and local), and advising both private and nonprofit entities on how to navigate these important tax opportunities. To date, Michael has helped countless investors understand the legal requirements and processes to obtain tax credits and techniques to ensure deferral reduction or exclusion of capital gains, and has also been asked to lead panel discussions and roundtables at industry conferences as a result of his deep understanding.
“This is a tremendous opportunity for investors in all industries,” said Michael. “The challenge will be understanding the fine print and acting quickly, so the Firm has successfully assembled a team of attorneys who are collectively focused on tax, fund formation, securities, real estate, and corporate law to help our clients navigate the law and opportunity efficiently.”
© 2018 Blank Rome LLP. All rights reserved. Please contact Blank Rome for permission to reprint. Notice: The purpose of this update is to identify select developments that may be of interest to readers. The information contained herein is abridged and summarized from various sources, the accuracy and completeness of which cannot be assured. This update should not be construed as legal advice or opinion, and is not a substitute for the advice of counsel.