Frequently Asked Questions

Yes, our firm has several properties throughout metro Atlanta and East Point - designated opportunity zones.

QOZs are an economic development tool—that is, they are designed to spur economic development and job creation in distressed communities. 

QOZs are an economic development tool designed to spur economic development and job creation in distressed communities. 

QOZs are designed to spur economic development by providing tax incentives for investors who invest new capital in businesses operating in one or more QOZs. 

No.  You can take advantage of these tax incentives even if you do not live, work, or have an existing business in a QOZ.  All you need to do is invest the amount of a recognized eligible gain in a QOF and elect to defer the tax on that gain. 

A list of each QOZ can be found in IRS Notices 2018-48 (PDF) and 2019-42 (PDF).  Further, a visual map of the census tracts designated as QOZs may be found at Opportunity Zones Resources. 

The numbers are identifiers for the population census tracts developed by the U.S. Census Bureau that are designated as QOZs. 

You can find 11-digit census tract numbers, also known as GEOIDs, using the U.S. Census Bureau’s Geocoder. After entering the street address, select Public_AR_Census2010 in the Benchmark dropdown menu and Census2010_Census2010 in the Vintage dropdown menu, and click Find. In the Census Tracts section, you will find the number after GEOID.-or just as ask Mackenzie! 404-458-7401

To become a QOF, an eligible corporation or partnership self-certifies by annually filing Form 8996 with its federal income tax return.  See Form 8996 instructions.  The return with Form 8996 must be filed timely, taking extensions into account. 

An LLC that chooses to be treated either as a partnership or a corporation for federal income tax purposes and is organized for the purpose of investing in QOZ property can be a QOF. 

Gains that may be deferred are called “eligible gains.”  They include both capital gains and qualified 1231 gains, but only gains that would be recognized for federal income tax purposes before January 1, 2027. They are not from a transaction with a related person.  For you to obtain this deferral, the amount of the eligible gain must be timely invested in a QOF in exchange for an equity interest in the QOF (qualifying investment).  Once you have done this, you can claim the deferral on your federal income tax return for the taxable year in which the gain would be recognized if you do not defer it. 

In general, qualified 1031 gains are gains reported on Form 4797, Part I.  For additional information, see instructions for Forms 8949 and 4797. 

Yes, this gain is eligible. You may elect to defer the tax on the amount of the eligible gain invested in a QOF. If you only invest part of your eligible gain in a QOF, you can elect to defer tax on only the part of the eligible gain invested in this way.  See Notice 2020-39 for a particular rule if the last day of your 180-day period was on or after April 1, 2020, and before December 31, 2020.