EisnerAmper announced that it has launched a Qualified Opportunity Funds (QOF) full-service offering for investors, real estate developers and fund sponsors. As part of the 2017 Tax Cuts and Jobs Act, QOFs provide significant tax and economic benefits for investors in targeted communities (zones) in an effort to encourage local economic development. Specifically, these tax benefits include:
- Temporary deferral of tax on capital gains.
- Elimination of up to 15% of the tax on the deferred capital gain.
- Potential exclusion from tax on capital gain generated from the appreciation of QOF investments.
Leading EisnerAmper’s Qualified Opportunity Fund team is New York partner Stephanie Hines. She has more than 15 years of tax compliance and consulting experience. Her client base includes hedge and private equity fund managers, family offices, real estate professionals and entrepreneurs.
“This can be a great vehicle for investors, but it’s prudent to have an experienced business advisor who can help you navigate the complexities,” says Stephanie. “For example, QOFs must meet certain requirements with respect to investment structure, qualifying property, and business activities. Furthermore, failure to meet the required asset tests can result in significant penalties. Therefore, engaging a skilled advisor is critical.”