OZs are the Wild West right now... There is no clear guidance on what is allowable and what is not. If you want to invest through this mechanism, it may be better to hold off or the IRS may come knocking on your door in a few years.
Buying real estate for personal use would seem like undermining the spirit of the OZ legislation. I don't think it will fly...
But isn't the IRS knocking in a few years better than the IRS knocking THIS year?
IANAL (or a CPA), but it seems like a good-faith attempt to invest in an OZ should not incur penalties later. Disclaimer: you are taking about the IRS, so logic/fairness may not apply.
Also: why would personal investment be against the spirit of the OZ legislation? It seems to focus on getting the property developed, not why it is developed.
> But isn't the IRS knocking in a few years better than the IRS knocking THIS year?
There's a 3rd option: How about the IRS knocking never? I say that in jest as I know you have a 1:3 chance in getting audited just through the normal course of business. I suppose it depends on your risk tolerance.
Buying real estate for personal use would seem like undermining the spirit of the OZ legislation. I don't think it will fly...