Opportunity Zone Office Hours – December 2025

On this month’s live episode of OZ Office Hours, OpportunityZones.com founder Jimmy Atkinson answers live questions and shares the latest updates on OZ 2.0, and upcoming events for investors and developers.

Join Jimmy the first Monday of every month at 3:00 PM Eastern Time, to get your Opportunity Zones questions answered live.

About The Opportunity Zones Podcast

Hosted by OpportunityZones.com founder Jimmy Atkinson, The Opportunity Zones Podcast features guest interviews from fund managers, advisors, policymakers, tax professionals, and other foremost experts in the Opportunity Zones industry.

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Episode Summary

Upcoming OZ Events and Community Updates

Jimmy opens the December 2025 Opportunity Zone Office Hours by previewing the Novogradac Opportunity Zone Summit taking place this week in Las Vegas. More than 300 attendees are expected, making it the largest in-person OZ conference since 2018. He notes strong representation from legal experts, accountants, developers, investors, and many newcomers interested in the OZ 2.0 era.

He also highlights the fully booked OZ Insiders networking dinner at Mandalay Bay, which will host 70 members—the largest dinner the group has ever held. Jimmy reflects on OZ Insiders’ growth from a small founding cohort meeting on Zoom to hosting quarterly in-person dinners in major cities and offering monthly master classes. Last month’s session featured Jerry Risen discussing OZ 2.0 preparation for QOFs, and the upcoming December 8 master class will be led by Kenan Fikri and Catherine Lyons on how to lobby for OZ 2.0 designations.

The OZ 2.0 Designation Timeline

Jimmy answers a question from an earlier strategy call about how OZ 2.0 designations will work. He explains:

  • Fresh ACS data (covering 2020–2024) is expected soon and will determine OZ 2.0 eligibility.
  • Treasury is expected to release its official eligibility list in early 2026.
  • The formal determination period begins July 1, 2026.
  • Governors then have up to 120 days to nominate census tracts.
  • Treasury has 30–60 days to certify those tracts.
  • New OZ 2.0 tracts go into effect on January 1, 2027.

Jimmy emphasizes that lobbying should begin with local stakeholders—public-sector economic development offices and private-sector partners—before engaging state officials, since each state will handle the process differently.

Choosing OZ Investment Sectors and Risk Considerations

A listener asks how to pursue a capital-preservation approach when investing a significant OZ-eligible gain. Jimmy explains that OZ investments are alternative and illiquid by nature, generally riskier than public equities but less speculative than assets like gold, silver, or Bitcoin. Real estate tends to be the least risky OZ sector, but most OZ real estate involves ground-up development or substantial improvement, which adds risk and limits liquidity.

He notes that rare situations—such as acquiring a nearly completed building before certificate of occupancy—can reduce development uncertainty. Other risk considerations include property type (multifamily, self-storage, industrial, office, hotel), market conditions, leverage levels, and overall capital structure.

OZ 1.0 vs. OZ 2.0 Tax Benefits

Jimmy confirms that all OZ 1.0 investments made through 2026 receive tax deferral until December 31, 2026, with the ten-year exclusion still fully applicable. Under OZ 2.0, starting January 1, 2027, any eligible gain invested into a QOF receives a rolling five-year deferral, regardless of investment date.

He also notes that while he is not personally involved with Caliber, he knows the leadership team and can provide introductions if needed.

Working With Specialized OZ Service Providers

A participant asks where to find help in setting up specialized fund structures. Jimmy directs viewers to the OpportunityZones.com providers directory, which lists recommended attorneys and accounting firms experienced in setting up QOFs and QOZBs.

Key Compliance Timelines and Safe Harbors

A question arises about OZ program timelines, including a reference to an old extension. Jimmy explains that prior COVID-era extensions have largely expired. He reviews current rules:

  • QOFs must meet the 90% asset test every six months (typically June 30 and December 31).
  • QOZBs must meet the 70% tangible property rule.
  • QOZBs may use a 31-month working capital safe harbor if they follow a written plan.
  • Substantial improvement must generally occur within 30 months.

A viewer also reports updated ACS timing indicating that five-year ACS data will now be released January 29, 2026. Jimmy acknowledges this as new information he will verify.

Depreciation Recapture, Eligible Gain, and Reinvestment Scenarios

Jimmy receives a question about whether depreciation recapture can qualify as eligible gain for OZ purposes. He states that he does not believe it qualifies, because eligible gain must be taxed as a capital gain and recapture is taxed differently, but he offers to research further.

Another question explores whether an investor could roll gains from an OZ 1.0 investment into an OZ 2.0 fund to restart timelines or gain new deferral. Jimmy explains:

  • The ten-year clock applies at the investor level, not the fund or asset level.
  • Rolling gains from OZ 1.0 into OZ 2.0 is not clearly addressed in regulations.
  • Some practitioners believe it might be possible; others believe it is not.
  • Jimmy cautions that the IRS may view it as abusive.
  • He plans to raise this pending question at the Novogradac Opportunity Zone Working Group meeting in Las Vegas.

Capital Stacks, Debt, and QOZB Flexibility

A listener asks whether a QOZB can borrow to cover a shortfall between equity raised and project cost. Jimmy confirms that QOZBs routinely combine equity and debt, citing examples where funds raise part of the capital stack from OZ investors and the remainder from lenders or tax credit sources.

New OZ Development Feasibility

A developer building a condominium project in a New York suburb asks whether setting up a dedicated OZ fund is possible. Jimmy says it is absolutely possible if the property is located in a designated Opportunity Zone and encourages direct outreach for guidance.

Upcoming Episodes and OZ Insiders Programming

Jimmy closes by previewing several upcoming events:

  • The December 2 OZ Insiders dinner in Las Vegas, which has reached capacity.
  • The December 8 master class on how to lobby for OZ 2.0 designations.
  • His January 12 master class on the OZ outlook for 2026.
  • New interviews he plans to record this week at the Novogradac Summit.
  • A final OZ NewsHour episode later this month featuring the annual Opportunity Zone gift guide.

He thanks the audience for strong engagement, encourages likes and subscriptions, and invites viewers to join future Office Hours sessions and the OZ Insiders community.