Adam Leitman Bailey, P.C. Represents Purchaser in Acquisition of Multifamily Property Eligible for “Qualified Opportunity Zone” Tax Benefits
Investors looking to defer capital gains tax may be able to do so by purchasing property located in a Qualified Opportunity Zone (QOZ). QOZs were developed by the federal government as an economic incentive tool to spur development in economically distressed areas. Under certain conditions, by investing in properties located within these zones, an investor may qualify for preferential tax treatment.
Adam Leitman Bailey, P.C. represented a purchaser of a multifamily property in Brooklyn located in one of these QOZs, and successfully navigated the purchaser through the process of contract through closing. Adam Leitman Bailey, P.C. negotiated for inclusion of language in the purchase agreement to preserve the purchaser’s rights to pursue these benefits and handled the formation of the corporate entity that took title to the property. With the assistance of tax experts, Adam Leitman Bailey, P.C. included language in the operating agreement of the purchasing LLC to ensure the purchaser’s eligibility for the tax benefits.
On the morning of closing, despite a last-minute issue with closing adjustments that threatened to kill the deal, Adam Leitman Bailey, P.C. was able to negotiate a solution and guided the purchaser in successfully closing on the property.
Bonnie Berkow and Steven Wagner of Adam Leitman Bailey, P.C. represented the purchaser in this transaction.