How To make a Direct Opportunity Zone tax deferred Invest

If you have or had a capital gain from the sale of an asset in 2019 or 2020 you can make an investment of the capital gains portion of the sale into a Qualified OZ investment such as the Palace Way mobile Home Park (PW-MHP).

STEPS:

1. Determine you qualify as an accredited investor.

2. Read the PW-MHP PPM and disclosures

3. Fill out the subscription agreement.

4. Make the deposit into the PW-MHP account

5. File form 8949 with your tax return.

If you are converting from a 1031 exchange to an OZ investment see your CPA to determine the number of capital gains that qualify.

The following is from the IRS website:

Q16. How do I elect to defer my eligible gain?

A16. You may make an election to defer the gain, in whole or in part, when filing your federal income tax return. That is, you may make the election on the return on which the tax on that gain would be due if you do not defer it. For additional information, see How To Report an Election To Defer Tax on Eligible Gain Invested in a QOF in the Form 8949 instructions.

Q17. Can I defer 1231 gain for a taxable year under the QOZ rules?

A17. Yes. You can elect to defer the amount of 1231 gain if the amount of the gain was invested in a QOF during the 180-day period that begins on the day the 1231 gain was realized. For proper reporting of this gain, see instructions for Forms 8949 and 4797. If your 1231 gain was realized in 2019, your 180-day period may begin on December 31, 2019.

Q18. Can I still elect to defer tax on that gain if I have already filed my federal income tax return?

A18. Yes, but you will need to file an amended return. An individual or a married couple uses Form 1040-X for this purpose and attaches Form 8949.

Contact: Jim Glasgow for the subscription agreement form and the PPM documents. At 210-4132-7230

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