Articles
Nathaniel Dodson On
In What State Should I Form My Entity?
I recently had a client that specifically asked me to form their entity in Nevada instead of the state where the property they were syndicating was located. Their reasoning was that Nevada had the best laws for entities like limited liability companies. Is that really true? And if so, does it really matter? If you…
Nathaniel Dodson On
QUALIFIED OPPORTUNITY ZONES – FAQ
What is a Qualified Opportunity Zone? The Tax Cuts and Jobs Act of 2017 created Qualified Opportunity Zones, which are economically-distressed areas designated by the government that provide certain tax benefits to investors in an effort to spur economic development and job creation. (See also https://www.irs.gov/newsroom/opportunity-zones-frequently-asked-questions) Where are Qualified Opportunity Zones located? A map of…
Nathaniel Dodson On
Creating and Maintaining Qualified Opportunity Funds
In order to create a Qualified Opportunity Fund (QOF), a partnership or corporation (or limited liability company taxed as a partnership or corporation) must file Form 8996 to self-certify with the IRS. Further, the entity must be set up with the sole purpose of operating as a QOF, which may be stated in the organizational…
Nathaniel Dodson On
How Do Investors Take Advantage of Opportunity Funds?
If an investor is interested in taking advantage of the tax benefits associated with Qualified Opportunity Funds (QOF) (See Tax Benefits for Investors in Qualified Opportunity Funds) Any type of capital gain may be invested in a QOF, including, real estate, stock, cryptocurrency, artwork, etc. Typically, real estate requires like-kind for like-kind exchanges, however, QOFs…
Nathaniel Dodson On
What is an Opportunity Zone Fund?
What is a Qualified Opportunity Fund? The Tax Cuts and Jobs Act of 2017 added many new tax provisions for 2018. One such provision created something called Qualified Opportunity Zones which are intended to spur economic development and job creation in designated distressed communities. People or entities that invest in eligible property located in an…
Nathaniel Dodson On
OFFERING DIFFERENT CLASSES OF SECURITIES
Can I Offer Different Classes of Securities? The short answer is obviously yes, as an issuer of securities you are completely free to offer different classes of securities if the company’s governing documents allow for it (for example, an LLC’s operating agreement or a corporation’s bylaws must be written so that the company can issue…