5 Opportunity Zone Audit Traps That Can Kill Your Tax Free Exit

The Opportunity Zone rules create massive upside for you in the form of tax savings. They also create massive upside for the IRS if they can unwind your deal.

In this video, I walk through the five OZ audit traps I see over and over again when investors, advisors, and fund managers come to us for help:

Sloppy substantial improvement tracking that will not stand up when the IRS asks for proof

Missed or misunderstood 180-day clocks that quietly disqualify the gain

Inclusion events from refis and distributions that blow up the deferral

Weak reporting on Forms 8996 and 8997, plus thin documentation on the 50 percent gross income test

Failure to timely file Form 8996, which often requires a private letter ruling that can cost around 30,000 dollars to fix

Audit readiness is not about perfection. It is about discipline. Track your costs, monitor your deadlines, watch for inclusion events, and file clean reports on time.

If you want a second set of eyes on your Opportunity Zone structure and audit trail, schedule a free 15-minute call with the OZPros team. We will review your facts, forms, and timelines so you know exactly where you stand.

Schedule your 15-minute OZ audit readiness call here:
https://meetings.hubspot.com/john-vac...

If you want ongoing help staying audit-ready, you can also test drive our Ascent 2.0 weekly membership for a month on me. It is built for investors, accountants, and advisors who want simple systems, live guidance, and OZ peace of mind.

ozpros.com/ascent