Thread by @DallasAptGP

Had an OZ question in DM's today that is worth turning into a thread.

Let’s say someone has a $400,000 capital gain that she wants to put in an OZ fund

Is she able to break it down into $100K groups and put it with different GPs?

I think that she could accomplish this in 2 different ways.

Before acting on any of this please consult with CPA and/or tax attorney (I am not either).

The easiest would be to invest directly into 4 separate OZ Funds that are managed by GP's.

If she invested into multiple funds but only had 1 gain then she needs to make sure to get them all done within the correct 180 day period

If the gain is from an investment where she gets a K-1, she must pick ONLY 1 of the below methods for investment timing into OZ Fund:

•180 days after gain actually occurs
•180 days after entity calendar year end
•180 days after K-1 is first due

The alternative way to do it would be to create and then invest into her own "Captive OZ Fund" with all $400k. Same timing applies

Then she could find 4 different GP's that were offering investment directly into their QOZB's. There are several active on Twitter (including me)

The hard part may be finding 4 GP's that need money into QOZB's at roughly the same time.

She would only have 180 days between funding the QOF and putting money into the GP's QOZBs

I think using the OZ structure is by far the most tax efficient way to participate in Real Estate investing and I am glad that people are asking questions

If you are a GP actively doing OZ deals please reach out.

I am putting together a Twitter list which will hopefully be a resource for OZ investors.

Ling-term goal is to create a well educated gang of OZ investors with their own QOF’s who want to compound very tax efficiently.