Opportunity Zone Guidance – Interpreting the New Treasury Department Regulations

The IPA hosted a webinar with industry tax experts to analyze and interpret the new proposed regulations on Qualified Opportunity Zones from the US Treasury Department. Dan Cullen (Baker & McKenzie LLP), Steven Meier (Seyfarth Shaw LLP) and Matt Peurach (Morris, Manning & Martin, LLP) offered insight and guidance on several important issues related to QOZs, including:

• the safe harbor for capital deployment;
• the exclusion of land cost for substantial improvement calculation;
• the treatment of capital gains versus ordinary income;
• gains earned through a pass-through entity;
• “Deemed Contributions” and Partnership Level Debt;
• the definition of “substantially all” for location; and
• Qualified Opportunity Zone eligible investment instruments in a Qualified Opportunity Fund

LISTEN TO RECORDING:

PANELISTS:

Daniel F. Cullen, Partner, Baker & McKenzie LLP

Daniel F. Cullen has nearly 20 years of experience in tax planning for structured real estate transactions and related securities law matters. Mr. Cullen serves as a REIT columnist for the Journal of Passthrough Entities and is viewed as a leading professional in the taxation of REITs and related structures. Mr. Cullen received the Best Panel Award, for the presentation “An In-Depth Look at DSTs” at the 2013 ADISA Annual Conference. Mr. Cullen also serves as an adjunct professor at Northwestern University School of Law and DePaul University College of Law, teaching the Taxation of Structured Real Estate Transactions.

Matt Peurach, Partner, Morris, Manning & Martin, LLP

Matt Peurach is a partner in Morris, Manning & Martin, LLP’s Tax and Real Estate Capital Markets practices. A large portion of his practice focuses on structuring commercial real estate transactions, negotiating and drafting partnership and limited liability company agreements documenting equity investments in real estate, as well as structuring private equity funds and other joint venture-related entities predominantly focused on real estate investments.

Prior to joining MMM, Mr. Peurach was an associate at a large Baltimore-based law firm and was a senior associate in the Washington National Tax office of a “Big 4” accounting firm.

Steven Meier, Partner, Seyfarth Shaw LLP

Steven Meier is chair of Seyfarth’s Corporate Department and co-chair of the firm’s Tax Practice. He is a deal lawyer with broad experience in designing and implementing U.S. domestic and cross-border corporate and real estate transactions. Mr. Meier is active in the capital markets industry, where he advises clients in the design, implementation and monetization of traditional and alternative real estate investment programs. His mergers and acquisitions practice involves counseling strategic and financial buyers and entrepreneurs on the corporate and tax aspects of domestic and cross-border business acquisitions and dispositions. Mr. Meier has been recognized by The Legal 500 for his tax and mergers and acquisitions practices, and he is a frequent speaker on tax and business issues in real estate securities programs and mergers and acquisitions transactions.Steven Meier is chair of Seyfarth’s Corporate Department and co-chair of the firm’s Tax Practice. He is a deal lawyer with broad experience in designing and implementing U.S. domestic and cross-border corporate and real estate transactions. Mr. Meier is active in the capital markets industry, where he advises clients in the design, implementation and monetization of traditional and alternative real estate investment programs. His mergers and acquisitions practice involves counseling strategic and financial buyers and entrepreneurs on the corporate and tax aspects of domestic and cross-border business acquisitions and dispositions. Mr. Meier has been recognized by The Legal 500 for his tax and mergers and acquisitions practices, and he is a frequent speaker on tax and business issues in real estate securities programs and mergers and acquisitions transactions.