60 OPPORTUNITY ZONE MAGAZINE | VOLUME 2 • ISSUE 1
Your
Opportunity Zone Partner
Investing in or creating a QOF or a QOZB requires careful analysis . The tax professionals at HCVT can help you evaluate the tax gain deferral and the business investment opportunities , provide recommendations for structuring , assist with tax compliance services , and provide assistance with the ongoing monitoring of the qualification of the QOF and QOZBs .
We specialize in structuring Family Office OZ Funds and assist fund managers and investors with complex tax issues . With over 100 QOFs and QOZBs formed for our clients , we have developed several value-added elements to our clients ’ OZ structures , including utilization of IRC Section 1202 Qualified Small Business Stock and layering in additional federal and state tax credits and incentives for maximum after-tax results based on our customized approach .
Blake Christian , CPA / MBT Top 25 OZ CPA and Influencer
Blake . Christian @ hcvt . com
( 435 ) 200-9262 - Park City ( 562 ) 216-1800 - Long Beach www . hcvt . com
About HCVT
HCVT is a full service CPA firm that provides tax , accounting , business management , and mergers & acquisition services to private companies , closely-held businesses , public companies and high net worth individuals and family offices . We provide audit and assurance services to privately held businesses , funds , and employee benefit plans . We are a team of nearly 700 members , including over 100 partners and principals . We serve our clients from nine offices in Southern California , and offices in Northern California , Fort Worth , Texas , Park City , Utah , and Phoenix , Arizona .
Validating the strength of our people and the success of our firm , HCVT has been recognized by Inside Public Accounting as one of the “ Best of the Best ” Firms for a record 16 consecutive years and Accounting Today recognized HCVT as a Top 100 Firm .
Many investors spend most of their time analyzing what can go wrong and how to mitigate risk , while public leaders tend to focus on a wishlist of what they want to go right . It ’ s not enough for local leaders to sit back and be reactive . If you ’ re a local leader hoping to catalyze new projects that leverage OZ capital , you need a full sense of the tools and partners you can bring to the table . When working with prospective investors , speak to specific incentives , policies , partners , capital resources and the improvements that can and will be leveraged to get projects done , and support growth over time . Be specific about timelines and commitments .
Finally , remember that most real estate projects are done with five year holds with a conceivable IRR . In OZs , investors are betting on an equity multiplier , and that means they ’ re focused on the area around their projects to be successful , as they may be planning to divest in ten years ’ time . Successful local leaders focus on the issues that impact success . Nobody can foresee the future , but leaders should have a clear plan for how the community will grow over time . Bottom line , the tax benefits only work if there is a profitable project .
WHAT ACTIONS MAY LOCAL LEADERS BE TAKING THAT WORK AGAINST ATTRACTING AND SUPPORTING OZ INVESTMENTS a defined role as a project partner , there simply is no requirement that the government even be at the table beyond the typical project approval process . Leaders with OZs in their community should understand the program ’ s goals and its details and educate local stakeholders and elected officials about the possibility to leverage the incentive to attract and support projects that bring community benefits .
To this end , local leaders who wish to leverage the incentive to attract new projects need to adopt a pro-investment mindset , and a strategy to support growth over time . The public sector
Coordinating public and private sector investment is key to creating financially successful projects that also improve lives .
It ’ s vital that local leaders understand the program for what it is - a private sector tax incentive . In fact , unless the public sector has
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