Number seven on our list of things not to do in your Qualified Opportunity Zone transaction, do not forget to either contribute cash or some kind of property into your Qualified Opportunity Zone Fund within 180 days. The contribution needs to be a capital gain and it needs to go into a QOZF within 180 days from the date of sale or within 180 days from the partnership tax filing deadline. Please note, any kind of property can be contributed into the QOZF. You are able to contribute stock or cryptocurrency. But the key is, you need to be liquid for when the test comes, for when you need to move your money down to the Qualified Opportunity Zone Business . The 90% asset test will happen between six months to a year. When you hit the 90% asset test, you need liquid cash that can move from your bank account down to your QOZB. To reiterate, if you contribute stock or cryptocurrency, make sure it’s liquid and in cash by the six month asset test.
This is also relevant for anybody that loaned money from their fund to themselves, which you can do for under 18 months or less while you’re trying to find a project. Once again, make sure it’s liquid before it goes down to the QOZB in time for the six month asset test. We work with several groups offering products that can help with that. If you are interested, we’re happy to set up a call with QOZB Capital and other businesses that will help you earn cash on your money while it’s waiting for your transaction to happen.
If you want to learn more about Qualified Opportunity Zones, download our Opportunity Zone Cheat Sheet, sign up for a Strategy Call, or sign up for our OZPros Compliance Bootcamp. Our Compliance Bootcamp occurs every Tuesday from 10:00am to 11:30am Eastern Time, where we help people do Opportunity Zones correctly from the start.