Qualified Opportunity Funds | OTS Series

Since coming into impact in January 2018, Subchapter Z of the US Tax Code—also referred to as the chance zone provisions—has enabled traders to pour billions of {dollars} right into a broad array of companies, from actual property growth corporations to tech startups. Investments in certified alternative funds (QOFs) supply a lot of distinct tax advantages, not the least of which is diminished capital positive factors tax legal responsibility. However the guidelines governing these investments are quirky, perplexing and—in some instances—severely restrictive.

Within the following collection of articles, we talk about the advantages of investing in a QOF, supply an in depth evaluation of the legislation surrounding the chance zone provisions, present case research that extra carefully look at industry-specific structuring of alternative zones and extra.


  1. THE BENEFITS OF INVESTING IN A QOF – Why ought to traders think about investing in certified alternative funds (QOFs)? The reply to this query can assist particular person and institutional traders make simpler selections when deciding if, how and when they need to pursue alternatives that, assuming sure circumstances are met, can supply important tax benefits. On this first of our collection of articles on QOFs, we discover the various advantages (and a few of the hazards) of investing on this distinctive funding automobile.

  2. HOW TO INVEST IN A QOF – You’ve determined that the advantages of certified alternative funds (QOFs) make this a gorgeous funding automobile. However how do you go about figuring out and investing in a QOF? This text discusses—from an investor’s perspective—the necessities for making an eligible funding in a QOF.

  3. WHAT IS A QOF? – How does a professional alternative fund really get certified as a QOF? Failure to fulfill the US Division of the Treasury’s definition of a QOF can severely limit the fund’s potential to draw capital. On this third of our collection of articles on QOFs, we talk about—from a fund’s perspective—the mechanics of qualifying the fund as a professional alternative fund.

  4. BASICS OF QOF INVESTING: WHAT IS A QOZB? – Whereas certified alternative zone (QOZ) property should make up at the very least 90% of the property of a professional alternative fund (QOF), solely 70% of the tangible property of a professional alternative zone enterprise (QOZB) want be QOZ property. Whereas this would possibly sound complicated on its face, this distinction can assist a QOF keep flexibility and procure particular tax advantages. On this fourth of our collection of articles on QOFs, we talk about the entities that qualify as QOZBs and whose pursuits qualify as QOZ partnership pursuits or QOZ inventory.


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