These large liquidity events are one reason why the federal Qualified Opportunity Zone program was introduced in the Tax Cuts and Jobs of 2017. Part 1 of this article discussed which gains are eligible under the QOZ program, how the QOZ program compares to 1031 exchanges, and how the mechanics of gain deferrals work in terms of basis adjustment, reporting and exemptions. Here we’ll look at five more important aspects of the program, including the recommended legal structure, original use and rehab requirements, types of businesses that don’t qualify for QOZ investment, and the types of taxpayers best suited for the program. QOF investments into business entities that hold real estate or other QOZ property can also qualify as QOZ property. Which clients should invest in a QOF. If your client is setting up their own QOF, the deferred gain should be at least $1 million in order to justify the legal and administrative costs of formation. In a recent example, despite significant benefits for the local community, as well as benefits for Amazon, public pressure related to state-level tax breaks and subsidies forced Amazon to shutter its New York City relocation plans – which involved a QOZ. There will be many open issues surrounding the QOZ program and additional guidance is expected in the near future. Still, taxpayers who have already sold an asset generating a large capital gain should consider forming a QOF in order to “Park” the gain within 180 days for future reinvestment once more guidance is provided.