Opportunity Zone FAQS
Are there limits to the sort of money I can invest?
- Investors must invest capital gain, or 1231 gain money to receive tax deferral, reduction, and/or elimination benefits.
- Papillon Fund is a mixed fund and will also accept traditional investment monies from qualified investors.
When do I have to invest?
- Investors have 180 days from recognition event to invest in an Opportunity Zone Fund to receive tax benefits. 1231 gain investors must invest on the last day of the tax year.
Are there limits to how much I can invest?
- You are limited to the extent of your capital gains in obtaining Opportunity Zone tax benefits. If you have non-gain funds to invest, please contact us.
What qualifies as an opportunity zone fund?
- Opportunity Zones Funds must elect to be covered by opportunity zone legislation and invest 90% of fund capital in Qualified Opportunity Zone property within 30 months.
- Qualified Opportunity Zone property is property located in an Opportunity Zone designated census tract. Property may refer to real property or other business property as designated by opportunity zone legislation.
Where can I learn more about opportunity zone legislation?
- Please speak to your tax advisor or visit a trusted financial resource for more information.
- IRS: https://www.irs.gov/newsroom/opportunity-zones-frequently-asked-questions
- HUD: https://opportunityzones.hud.gov/
- Treasury Dept: https://www.cdfifund.gov/Pages/Opportunity-Zones.aspx
Other Resources & White Papers
January 2020: US Economic Development Administration OZ Tool
Year End 2019: JLL; Why Better Development Amenities Bring Higher Returns
December 2019: IRS Final Regulations on Opportunity Zones - FAQ's