TOP 25 ATTORNEYS
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PHIL JELSMA
CGS3
Phil Jelsma is partner and chair of the tax practice team at Crosbie Gliner Schiffman Southard & Swanson LLP ( CGS3 ), a California-based commercial real estate law firm . With over 30 years of experience in structuring sophisticated real estate and business transactions , Jelsma is widely recognized as a leading joint venture and tax attorney in California . His practice focuses on limited liability company and partnership business and tax planning , and he regularly advises on entity formation , with an emphasis on real estate and nonprofit corporations . He often structures Opportunity Zone transactions and tax-free exchanges under Code Section 1031 . Since 1989 , Jelsma has been an adjunct professor at the University of San Diego School of Law , where he specializes in tax law .
WHAT NEW TRENDS ARE YOU SEEING IN THE OPPORTUNITY ZONE INDUSTRY ?
First , there was a rush of taxpayers looking to fund Qualified Opportunity Zone Funds before December 31 , 2021 , to take advantage of the 10 % reduction in capital gains if held five years . Second , I think we ' ve seen an increase in investments in properties outside California , reflecting the overheated market here the ability to locate strategic Opportunity Zone real estate investments in the Midwest and South . Third , more taxpayers are interested in making businesses rather than real estate investments than ever before , reflecting the fact that Congress is thinking about eliminating some of the benefits associated with Qualified Small Business Stock under Section 1202 . If the capital gains exclusion is reduced to 50 %, I would expect more interest in Qualified Opportunity Zone Businesses .
JAMES O . LANG
GREENBERG TRAURIG
James Lang ’ s practice is focused on tax incentive programs , Qualified Opportunity Zone and Qualified Opportunity Fund financing , tax credits , and state and federal incentive programs . He is closing $ 9.5 + billion of QOF and ancillary QOZ deployment of funds and has closed or is structuring several billion dollars in tax credit transactions . Lang represents funds , investors , lenders , community development entities , and for-profit and not-for-profit project sponsors in complex transactions where capital stacks require enhancement through incentive financing , including QOZs , state and federal new markets , affordable housing and low-income housing , historic rehabilitation , and renewable energy tax credits .
WHAT NEW TRENDS ARE YOU SEEING IN THE OPPORTUNITY ZONE INDUSTRY ?
Eligible gains from the potential 10 % step-up in basis for investments made before 12 / 31 / 21 and possible capital gains rate tax legislation are seizing investors ’ focus . While the stepup in basis is important , the post 10-year incentive associated with investment into projects or companies with high appreciation on a post 10-year horizon is critical . Quality projects , especially those with meaningful social and community impacts are attractive . QOF investment continues to distinguish project sponsors and QOZBs opportunities with investors . Coordinating Working Capital Safe Harbor plans and structuring to meet QOZB requirements are predominant for businesses and sponsors . All market participants are laser-focused on potential legislation and further issue-specific guidance .
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