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      Cendrowski_Header-Images_RealEstate_CAllOut

      Real Estate Focused Expertise

      Our real estate specialists can assist you with alternative planning techniques, provide advice on transaction structuring, scrutinize tax returns prepared by other firms, and more.

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      OS_IntrimCEO_Succession_CallOut

      Simplifying Equity and Ownership in Construction

      Collaborate with our consultants to simplify the process of using an ESOP to tailor a strong succession plan, build wealth with equity and ownership, boost recruiting and client retention, and more.

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  • About Us
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      • John T. Alfonsi
      • Kristina M. Borsheim
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      • Louis W. Petro
      • Catherine Raker
      • James F. Schultz
      • Kaitlyn E. Smith
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  • What We Do
    • Tax
      • Business Tax Services
        • Tax Planning Strategies
        • Tax Planning & Compliance
        • Wealth Transfer & Business Succession Planning
        • Cost Segregation Studies
        • Small Business Stock Gain Exclusion
        • Opportunity Zones Planning
        • Qualified Small Business Stock Planning
        • Tax Controversy
        • Transfer Pricing
      • High Net Worth Tax Services
        • Family Office Tax Structuring & Compliance
        • Generational Succession Planning
        • Gift & Estate Planning
        • Tax Structuring & Compliance
      • Real Estate Tax Services
        • Entity Structuring and Tax Compliance
        • REIT/UPREIT Structuring
      • International Tax
        • Expatriation Compliance
        • Financial Asset Disclosure
        • Tax Planning & Compliance for Foreign Assets
      • Succession Planning
        • ESOP Planning
        • RollUps/UPREITS
        • Buyouts & Compensatory Transfers
    • Advisory
      • Business Valuation Services
        • Financial Reporting
        • Income, Estate & Gift Valuations
        • Intellectual Property Valuations
        • Marital Dispute Valuations
        • Mergers & Acquisitions Valuations
        • Shareholder Dispute Valuations
      • Dispute Advisory
        • Economic Damages Services
        • Expert Witness Testimony
        • Forensic Accounting
        • Financial Disputes & Investigations
        • Marital Dissolution
        • Receivership Services
        • Shareholder Disputes
      • Due Diligence
        • Cybersecurity
        • Enhanced Customer Due Diligence
        • Operational Assessments
      • Family Office Advisory
        • Direct Investment Due Diligence and Valuation
        • Family Governance & Succession Planning
        • Family Office Operational Assessments
        • Operational Assessments for Portfolio Companies
      • Cannabis Services
        • Background Investigations
        • Entity Formation & Startup
        • MMFLA State License Application
        • Tax Return Preparation
      • Private Equity/Venture Capital Advisory
        • Back Office Services
        • Background Investigations
        • Due Diligence
        • Tax Structuring & Compliance
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      • Walter M. McGrail
      • James F. Schultz
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  • Get in Touch
Make a Payment
Make a Payment
Cendrowski Corporate Advisors Logo
  • What We Do
    • Tax
      • Business Tax Services
        • Tax Planning Strategies
        • Tax Planning & Compliance
        • Wealth Transfer & Business Succession Planning
        • Cost Segregation Studies
        • Small Business Stock Gain Exclusion
        • Opportunity Zones Planning
        • Qualified Small Business Stock Planning
        • Tax Controversy
        • Transfer Pricing
      • High Net Worth Tax Services
        • Family Office Tax Structuring & Compliance
        • Generational Succession Planning
        • Gift & Estate Planning
        • Tax Structuring & Compliance
      • Real Estate Tax Services
        • Entity Structuring and Tax Compliance
        • REIT/UPREIT Structuring
      • International Tax
        • Expatriation Compliance
        • Financial Asset Disclosure
        • Tax Planning & Compliance for Foreign Assets
      • Succession Planning
        • ESOP Planning
        • RollUps/UPREITS
        • Buyouts & Compensatory Transfers
    • Advisory
      • Business Valuation Services
        • Financial Reporting
        • Income, Estate & Gift Valuations
        • Intellectual Property Valuations
        • Marital Dispute Valuations
        • Mergers & Acquisitions Valuations
        • Shareholder Dispute Valuations
      • Dispute Advisory
        • Economic Damages Services
        • Expert Witness Testimony
        • Forensic Accounting
        • Financial Disputes & Investigations
        • Marital Dissolution
        • Receivership Services
        • Shareholder Disputes
      • Due Diligence
        • Cybersecurity
        • Enhanced Customer Due Diligence
        • Operational Assessments
      • Family Office Advisory
        • Direct Investment Due Diligence and Valuation
        • Family Governance & Succession Planning
        • Family Office Operational Assessments
        • Operational Assessments for Portfolio Companies
      • Cannabis Services
        • Background Investigations
        • Entity Formation & Startup
        • MMFLA State License Application
        • Tax Return Preparation
      • Private Equity/Venture Capital Advisory
        • Back Office Services
        • Background Investigations
        • Due Diligence
        • Tax Structuring & Compliance
      • Risk Management Services
        • AML Compliance
        • Crisis Management
        • Cybersecurity
        • Enterprise Risk Management
        • Governance Advisory
    • Outsourced Accounting & Finance
      • Interim CFO
        • Strategic Planning
        • Accounting Systems Review/Analysis
        • Succession Planning
      • Outsourced Family Office Services
        • Back Office Support
        • Philanthropic Planning & Administration
        • Family Governance & Succession Planning
      • Client Accounting Services
      • Tax Outsourcing
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Business Tax Services

Home » Services » Tax Services » Business Tax Services » Opportunity Zones Planning

Real Estate Opportunity Zones for Tax Deferral on Capital Gains

Cendrowski Corporate Advisors can help business owners maximize tax efficiency by taking advantage of real estate opportunity zones through purchasing property in government-designated distressed communities that may afford tax-efficient investment opportunities.

What is an Opportunity Zone?

Professional tax preparation is an absolute necessity for high-wealth individuals and business owners. Cendrowski
Corporate Advisors in metro Detroit and Chicago provide professional tax preparation to ensure maximum tax efficiency. Federal and state governments often require the results of careful research and planning to be displayed throughout tax filings, and CCA ensures those requirements are met.

Through the Qualified Opportunity Fund (QOF), investors put money into Qualified Opportunity Zone properties as a method of deferring tax payments on capital gains realized from the sale of capital assets.

Created as a way to encourage investment that brings economic growth to distressed areas, it’s one tool that Cendrowski Corporate Advisors consultants use to craft unique tax planning strategies that defer tax on capital gains.

Opportunity Zones Planning: Investing Through Qualified Opportunity Funds

Through Qualified Opportunity Funds, investors may become eligible for tax deferral benefits. However, investors are required to place all related capital gains into a Qualified Opportunity Fund within 180 days of gain realization. These tax deferral benefits apply to individuals, corporations, and flow-through entities. There’s no limit to the amount of capital gains that can be deferred by reinvesting in a Qualified Opportunity Fund.

The tax benefit depends on the timing of the investment in a Qualified Opportunity Fund and can include:

  • Gain deferral: Gains from the sale of assets reinvested in a Qualified Opportunity Zone Fund are deferred until the earlier of (a) sale of the interest in the QOF or (b) Dec. 31, 2026.
  • Gain elimination: Depending on the length of time an investment in a QOF is held, you may be able to permanently eliminate part of the gain. If the investment is held for five years, 10% of the deferred gain is eliminated. If the QOF investment is held for seven years, then 15% of the original gain is eliminated from taxable income.
  • Tax elimination on appreciation: If you hold the investment for at least ten years, you can step up the basis of the Qualified Opportunity Fund investment to the fair market value on the date you dispose of it. Therefore, no tax would apply to gain on the sale of the investment.
CCA_CaseStudy_03
Client Success: Opportunity Zones Planning Can Apply Post-Purchase

A long-standing hospitality owner-operator acquired a previously owned hotel located in a qualifying Opportunity Zone. The client did not acquire the property with the intention of qualifying the property as a tax deferral for capital gains. However, it was brought to the owner’s attention that several of his investors could benefit from the tax deferral of gains by qualifying his LLC as a Qualified Opportunity Zone Fund (QOF). We educated the owner on the relative costs and benefits of QOF and bonus depreciation.

As part of most hospitality acquisitions, the new owner conducts property improvement programs (PiP). Thanks to recent tax legislation, the PiP expenditures, as well as a substantial portion of the cost of the acquired building were deductible over the first two or three years of operating the property. This left the owner deciding whether to qualify the property as a QOF or take advantage of the rapid write-off of acquisition and improvement costs.

Cendrowski Corporate Advisors worked with the owner/operator, assisting in negotiations with the seller for purchase price allocation beneficial to the two tax strategies. Our team also worked with the client’s counsel to provide language for the LLC operating agreement to support the tax strategies. Cendrowski Corporate Advisors leveraged decades of cost segregation expertise in this analysis. The owner/operator presented the property to his investor group, allowing the potential investors to identify which of the two strategies benefited them.

John Alfonsi and 2023 Mid-market Deal Maker Symposium

John Alfonsi Panelist at the 2023 Mid-Market Deal Makers Symposium

Join us in congratulating John Alfonsi on being selected as a Panelist at the 2023 Mid-Market Deal Makers Symposium on January 10th – 13th. This year’s exclusive symposium for Deal Makers members will be held at the luxurious SLS South Beach in Miami, Florida. Deal Makers members are coming together for networking, education, and fun. […]

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GGI World Conference Recap

GGI World Conference Recap

Attending GGI World Conference is just one way we expand our knowledge. We also broaden our access to an extensive network of expertise and contacts through GGI Global Alliance. That opens a world of resources to benefit you. Harry Cendrowski attended Montreal’s GGI World Conference as global chair of the GGI Trust & Estate Planning […]

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GGI World Conference Recap

October 2022 Smart Business Dealmakers Conference: Chicago

Join Harry Cendrowski on Wednesday, October 12, 2022 at the SMART BUSINESS Dealmakers CONFERENCE in Chicago. Cendrowski Corporate Advisors returns to this fall conference as a sponsor and host committee member. In a session presented by Cendrowski Corporate Advisors and Alex. Brown (a division of Raymond James), Harry moderates a lively discussion on creating liquidity […]

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