President Tom Halbert / Gayle Maxey



President Tom Halbert / Gayle Maxey

Sarasota Sister Cities Involvement

Through “gentle persuasion” by Bill and Jean Wallace who I introduced Gayle to early on, we became members of Sarasota Sister Cities. Bill, Jean and I go back to being freshmen together at Drake University in Des Moines in the fall of 1950. Bill and I were journalism graduates at Drake in 1954. He went on to join Hallmark Cards in Kansas City and I entered the Air Force. Bill and Jean eventually moved to Sarasota where he became a financial advisor.

Bill was city director for SSCA (Sarasota Sister Cities Association) and deeply involved in 2002 with the establishment of Dunfermline, Scotland, as a Sarasota Sister City. Dunfermline is the birthplace of Andrew Carnegie, the industrialist and philanthropist, who led the expansion of the American steel industry in the late 19th century and became one of the richest Americans in history.

The signing ceremony was a major weeklong event. Bill recruited me to head public relations outreach for this event. From this beginning Gayle and I have been deeply involved with the international outreach program begun after World War II by President Eisenhower based on the premise that if people in other countries got to know each other – there might be fewer wars. President Eisenhower was responsible for the term Sister Cities, a program that throughout the rest of the world is termed Twined Cities.

We both became SSCA members in 2002, both of us serving many of those years as board members, and are still members today. The Sarasota outreach grew to including Hamilton, Ontario, Canada; Dunfermline, Scotland; Perpignan, France; Treviso Province in Veneto, Italy; Tel Mond, Israel; Vladimir, Russia; Xiamen, China; Mérida, Mexico; and Rapperswil-Jona, Switzerland. I began on the board as Vice President for Public Relations and later served as President.

Gayle created the organization’s first Meet and Greet happy hour outreach program. Her first monthly event was at a downtown Sarasota restaurant and drew eight people. That quickly expanded to a monthly event that consistently drew more than 50-70 members and potential members. She made sure the venues changed monthly with a goal of getting members to experience new restaurants and the business owners getting to know the impact of SSCA to the community.




Becoming Embroiled in Embezzlement

Using Investigative Reporter Skills


As I mentioned earlier my first initiative at becoming involved in my new community was when Bill and Jean Wallace “nudged” me to assist in the establishment and sign- ing ceremonies of Dunfermline, Scotland, to become an official Sister City with Sarasota in 2002. That led to both Gayle and myself becoming members of the board of directors and greatly expanding our friendship base, our knowledge of the communities, and civic leadership of Florida’s Culture Coast. That culminated in my becoming President of Sarasota Sister Cities in the spring of 2011 and walking  blindly into a disaster.

Following my election in May, the organization entered a pause time in what has become for Sarasota two seasons. One season when the snowbirds are here and one season when they are not. During the summer months we did hold board meetings, but not major community events. It  gave me time to learn the role of president. Being a reporter deep in my being, I knew my first job was getting to know our finances. Our treasurer gladly shared his monthly finance reports, but I had no verification of what was  in the reports and that bothered me. Two months later I got access to our banking account. But I was not able to get the records in our savings account held by a non-bank institution.

By digging into the records I learned our bank balance was $111, not the $24,000 that was reflected in  our treasure’s reports. And I had nothing to back up whether we had any funds in our saving account or not. The treasurer’s report indicated we had about $20,000 in that account. My first initiative was to inform senior officials in the City of Sarasota of my concerns. I formed an advisory committee that included Bill Wallace, a Sister Cities past president, and two members who were retired bank presidents. That was a lucky choice as Bill Wallace still had access to our savings account allowing us to determine that it was apparently still secure.

Further digging unearthed the fact that our treasurer had several civil legal cases pending for fraud and misappropriation of funds filed by three separate widows in Tampa. I also learned he was not a U.S. citizen, but an Italian from Sicily. My advisory panel and the city leader I was working with concurred that I should initiate a criminal case against our treasurer. I turned over the evidence to a city police force detective and the state’s attorney in Sarasota. A year later the District Court of Florida in Sarasota found him guilty, with a sentence that he would be deported to Italy plus a courtroom surprise. He had made an agreement to make restitution of $24,885.75. The funds came from an unnamed individual in Guam. The amount was equal to our known banking account losses that covered only two years of the four years he had been treasurer. We were not  able to get past banking records beyond the two-year look back to determine our real losses.

“State of Sarasota Sister Cities” Speech

April 5, 2013


On April 5, 2013, I gave my “State of SCAS” report at the annual general meeting held at SaraBay Golf and Country Club. My report shows the detailed initiatives in spite of the criminal fraud we lived through. The 2013 State of SCAS follows:

Undoubtedly the most important fact I can provide you in this report is that based on initiatives in October 2011 as I began my first term as president we are solidly based today. That was when I discovered we had just $111 in our banking accounts. I can tell you that today we are solvent, have created steps to ensure we have full and transparent financial records and this morning our gross balance in our accounts is $46,335.06 to continue our citizen diplomacy programs. Our membership has increased to 230, including 45 new members in the past 12 months. And all the credit goes to you, our board and members.

This is the time for me to take a moment to say thank you. Because really and truly, as President of Sarasota Sister Cities I am grateful. Grateful for each and every person who has dedicated his or her time, energy, money, and passion to making our Sister Cities association of Sarasota so special. Grateful that because the collective action of the passionate, active membership has supported our mission of making the world a better place. Grateful for the words  of kindness and encouragement that has motivated all of us  to do our volunteer jobs well every day.

We are excited about the new membership that has joined us in the past year and hope to connect you with our Sister Cities exchanges in the remainder of 2013 and beyond. We are excited about the initial special events that kicked off our 50th anniversary year including the Thistle Ball in February, and the One World Gala in March.

In nine days the La Musica Celebration concert at the Sarasota Opera will honor Sarasota Sister Cities. Then we hosted the Florida Sister Cities State Convention in May followed by involvement with the Sister Cities International annual convention on the River Walk in San Antonio, Texas, in July 12-13. More anniversary events are in the works. The monthly Chinese Film program in conjunction with Alliance member Ringling College of Art and Design continues. We are excited about the timely blog and social media innovations we have initiated and we are excited about the travel opportunities available to Russia and Italy in 2013 and to Israel in 2014.

Two other special events are already ongoing. The 10th annual Embracing Our Differences outdoor art exhibit is on display until June 2 at Sarasota’s Bayfront Park, plus now until April 29 at Rossi Waterfront Park in Bradenton, and   will be on May 1-June 2 at North Port High School. The annual exhibit attracted more than 2,400 entries submitted by individuals from 44 countries and 32 states. Sister Cities Association of Sarasota has partnered with Embracing Our Differences through our Alliance member of the Sarasota Manatee Jewish Federation since the initiative  began. 

The second is the Sarasota Film Festival which is also on going. This event traces back to the 1994 Sarasota twining with Perpignan. That tie was initiated by Alain Taulere who had homes in Perpignan, France, and Sarasota. He owned the Cafe of the Arts in Sarasota. He was very  prominent in organizing the French Film Festival in Sarasota, which evolved into the now prestigious Sarasota Film Festival.

Our successes certainly began with Sarasota itself. Sarasota, on Florida’s Cultural Coast is home to the greatest concentration of natural beauty, art museums and galleries; an abundance of theaters; performing halls featuring orchestra, opera, choruses; film production, and educational centers that make this remarkable city an important venue of creativity. The wealth of cultural resources and creativity in Sarasota match well with the diversity of our sister cities relationships that began in 1963 in response to President Eisenhower’s vision to enhance worldwide understanding one handshake at a time.

During the past year we have been busy with events, visits. For example, Tel Mond came to Sarasota in a big way in December with 27 young women who danced and participated in discussions with students at Sarasota Military Academy, Booker and Riverview High Schools and the Sailor Circus. They visited a Sarasota Ballet workshop and danced at the 12th Annual Holocaust Luncheon sponsored by our alliance member the Jewish Federation of Sarasota-Manatee. Their spectacular closing show was co-sponsored by the Federation and ourselves where they received Honorary Citizenship Certificates from Sarasota Mayor Suzanne Attwell.



One very active city has been Xiamen, China, led by City Director Dr. Carolyn Bloomer. In June we learned the results of a University of South Florida business opportunity research     project conducted on behalf of SSCA. The research was by 11 MBA students who were divided into three teams to identify export opportunities from Sarasota to Xiamen. The students created three business models that could be adopted for expansion to our seven other twinned cities. One plan has led to further exploration with meetings in Xiamen this fall.

In late October 2012 our alliance member State College of Florida hosted the 2012 Sarasota-Manatee China Town Hall at their Lakewood Ranch campus. Presentation speakers included Dr. Charles Steilen, our VP for Business and Economic Development; The Honorable Gary Locke, U.S. Ambassador to the People’s Republic of China, participated by webcast. Locke’s remarks placed great importance on citizen diplomacy initiatives. Locke said, “We need more people from America to come to China to understand the history, the culture, the language and the values of China to gain greater cooperation.” These contacts provide expo- sure to citizens of both nations with a positive impact of calming of fears and tempers.

Another success story happened this fall when Sister City member Dr. Edward Lin, who is founder and CEO of HealO-Medical, won a $1 million technology innovation contract in an international competition sponsored by Sarasota’s Chinese sister city of Xiamen. A Beijing Review magazine writer/photographer team from New York City visited Sarasota January 9 to research Vladimir, Russia, also had several activities during the past 12 months beginning with an international photo contest titled “A Day Together” on July 13, 2012. Sarasota is one of 20 sister cities in 12 countries twinned with Vladimir.

We learned about the death of Yuri Federov, our primary point of contact in Vladimir since our establishing the twinning with Vladimir. Yuri enriched Sarasota’s Sister Cities program with Vladimir through innovative ideas that served to bring people closer together. Mayor Suzanne Atwell proclaimed June 20 as Yuri Federov day in Sarasota.

Vladimir Chief of Police Alexander Rasov visited Sarasota October 17 in an effort to reactivate the relationship that had been dormant for several years. Rasov met with Sarasota Mayor Suzanne Atwell, City Manager Thomas Barwin, police counterparts, and Kate Alexander of Florida Studio Theater. Kate had been the house guest with the Rasov family when she was in Vladimir with the Florida Studio Theater Young Playwrights program. It was a result of this visit that SCAS gained Yulia Gauckhmann as our city director for Vladimir. Yulia is leading the Golden Ring tour of Russia to St. Petersburg, Moscow, and Vladimir.

City Director Pauline Mitchell skillfully handled the visits of the Florida Studio Theater Young Playwrights winners from Dunfermline, Scotland, in May. Plans were also made to host winners from Vladimir and Tel Mond, but conflicts prevented their travel to Sarasota. But for Kelly Fairbairn, Matthew Walton, and Teacher Elspeth McDonald it was an eventful five days in Sarasota that included viewing their “Hagis Hunt” play presented by FST actors on the FST stage. The Poet Laureate of the United States presented their awards at Holly Hall.

The 10th anniversary of our twinning with Dunfermline was celebrated as our first SCAS 50th anniversary event in February 2013. Dunfermline city director for the twinning, Mayor Ben Conway, was on hand with a delegation from the Kingdom of Fife community. The event, complete with pipers and tartans, packed the Bird Bay Yacht Club banquet room. SCAS continued to play the bad host, as our Sarasota Sister Cities golfers won the Competition Cup for the fourth straight time. The tournament is held biennially with revenge on Dunfermline’s mind for 2015.

Our final luncheon at the Sarasota Yacht Club was in November 2012 after we were notified that the yacht club had to restrict business events due to concerns on maintaining IRS tax-exempt status. A review of options included Bird Bay Yacht Club, Marina Jack’s, Michael’s on East and the SaraBay Golf Club. SaraBay Golf Club was selected as the best option considering price, availability, technical sup- port and quality of meals.

Our luncheon season began in October 2012 by honoring Dr. Mary Elemendorf, an active member for more than 41 years who had released an interesting new book just days before her 95th birthday. “From Southern Belle to Global Rebel, memoirs of anthropologist and activist Mary Lindsay Elemendorf” has several references to the history of Sarasota Sister Cities. 

Our November luncheon featured guest speaker Hadda LaMotte, a teacher at the Pablo Picasso Lycée in Perpignan, France, who reported on her students’ preparation for the SCAS sponsored Sustainability, Renewable Energy Confer ence to be held in Sarasota in November 2013. Hadda had just hosted SCAS Board members Beth Ruyle Hullinger and Craig Hullinger in Perpignan in September 2012. It was their first visit to a Sarasota Sister City, but they are veterans of other visits to sister cities in Europe and Asia while in key city positions in Illinois.

Our first luncheon at SaraBay Country Club featured Fran Harris who presented a special program about her late husband’s passion with the architecture of Venice, Italy – the       capitol city of Veneto.

The hit of the year has been our meet and greets arranged by Gayle Maxey. This event has provided double benefits – bringing customers to Sarasota businesses and enhancing our membership roll. What began with a modest attendance made up of mostly board members has now mushroomed to where 40 is a small number of attendees – and many of them first-time visitors to a SCAS event. Our last event at Blue Rooster drew 66 attendees. Our membership has grown to where we have 230 members on the roll – including 12 we  can only reach by snail mail. Thank you all for being involved in the use of this event to provide new members who see value in the Sister Cities Citizen Diplomacy concept!

And speaking of technology, we all owe a major vote of thanks to Craig Hullinger who as VP for Communications has brought us into today’s digital world through our complete social media palate. Beside our new web site being completed, we have an up-to-date blog photossarasotasistercities.blogspot.com and sarasotasistercities.com for learning what is going on – now! It has replaced our newsletter, which could not compete with the speed of our blog in getting you information. He has us connected to Facebook .facebook.com/SarasotaSisterCities and Twitter twitter.com/#!/SarasotaSisterC and LinkedIn linkedin.com/in/sarasotasistercities also.

But my favorite site is Pinterest pinterest.com/sarasotasister. No longer are photos of events and of our history just collections in our office. Pinterest is the place where we now have an unlimited collection of current and historical digital images to provide anyone worldwide access to learn who we are, what  we  do, and the community impacts we have made. Consider it a pin board or even a refrigerator door where you have your favorite photos to informally share with friends. What’s in it? It is divided into sections including a section for each sister city, great photos of Sarasota, Meet and Greets, Current Events, and Historic Collections. More than 1,000 photos in all and more to come.

What can you do with it? Pinterest is not just to look at.  It is to share. It is our best opportunity to expand community knowledge about SCAS – bypassing the established news media. It allows anyone in our twinned communities to learn more about their Sister City and the cities we are twinned with.

Who views our Pinterest site? As of this morning in the short time we have had our Pinterest site active we have followers from Australia, Canada, Italy, New York City, Chicago, San Francisco, Nevada, Massachusetts, California, Virginia,  seven media outlets, Tervis, Sarasota Memorial Hospital, Florida House, Homosassa Springs, Bradenton, Lakewood Ranch, and Sarasota plus seven SCAS board members. 

And with this report I pass on the Presidency to Beth Hullinger - knowing that the Sister Cities Association is in good hands and knowing that the framework for our organizational future is solid.

Despite the extraordinary challenges I faced, my best memories remain at the forefront – those being involved with an outstanding group of people, finding close friendships with  people globally that I would have never met otherwise and  being so deeply involved  in an organization that has such a  great mission. Again, thank you – thank all of you!”




Sustainable Economic Development

Sustainable Economic Development


Sarasota, Florida is a great place to start or expand your business.  And our eight Sister Cities are also ready to help you expand your business into their countries. For assistance in locating or expanding your business in Sarasota or in one of our Sister Cities contact:

Craig Hullinger
Vice President Economic Development
309 634 5557
sarasotasistercities@gmail.com

Mayor John Hamilton Gillespie, "The Father of Sarasota"

Mayor Gillespie and Bob  Heron
"The Father of Sarasota," Mayor John Hamilton Gillespie (14 October 1852 – 7 September 1923) was a Scottish-American soldier, land developer, businessman and politician, who settled in Sarasota, Florida, becoming Sarasota's first mayor.

Gillespie was born in Edinburgh, Scotland. As a boy he lived with his family at 53 Northumberland Street, Edinburgh and was educated at the nearby Edinburgh Academy and subsequently at the University of St Andrews. Like his father, he was a member of the Royal Company of Archers. (a ceremonial unit that serves as the Sovereign's Bodyguard in Scotland). He was admitted to The Society of Writers to Her Majesty’s Signet in 1875 and also served as a captain in the Midlothian Coast Artillery Volunteers. Upon his return from colonial service in Australia, his father, Sir John Gillespie, sent him to Sarasota, Florida in 1886 to work for the Florida Mortgage and Investment Company.

The company had enticed a group of Scottish colonists to Sarasota in 1885 to help settle its 50,000-acre holdings, which included most of the land constituting the present City of Sarasota. The settlers arrived to find most of the company's promises unfulfilled. Gillespie was dispatched to improve the situation. Many disillusioned colonists left, however, and the company entered liquidation proceedings.

Gillespie remained in Sarasota after the court appointed him to manage the assets of the company there. He organized the clearing of three miles of Main Street, the building of a substantial wharf on the waterfront, and the beginning of a 40-acre experimental farm.

In May 1886 he laid out two golf holes on his property. This was the first golf course in Florida and the second in the United States. An avid golfer, Gillespie learned the game at St. Andrews. In 1905 he built a nine-hole course on property now which is now the site of the Sarasota County Courthouse, Florida.

University educated, Gillespie was admitted to the highest legal body in Scotland. Having become a naturalized citizen of the United States in 1896, he joined the American and Florida Bar Associations. He served as president of the local Bar Association. He was influential in building an Episcopal church in Sarasota. He served as chaplain to Sarasota Bay Post #30 of the American Legion. As a Mason, he reached the Order of Knight Templar, was affiliated with the Independent Order of the Odd Fellows and became a charter member of the Kiwanis Club.


1902, he was elected the first mayor of Sarasota when the town was incorporated and held this office for six terms. He also served his community as Justice of Peace four years and Notary Public ten years. He was affectionately known as "Colonel" in this community.

Gillespie is credited with introducing Florida to the game of golf. In 1904 he built a nine-hole golf course east of the present Links Avenue. Over the years, he was commissioned to design and build six other Florida courses and one in Havana, Cuba. He was one of Florida's championship golfers and an authority on the sport.

Sarasota was incorporated as a town on 14 October 1902, coincidentally Gillespie's 50th birthday, and he went on to served as the Town's first Mayor. He was subsequently elected to five additional one-year terms.

Gillespie remained in Sarasota for most of his life. During that time he lived in three different houses, each one reflecting a different phase in his life. His first house was built on South Palm Avenue in 1886. Alex Browning, nineteen-year-old colonist from Scotland who had had some architectural experience, designed the home. He also was one of the six-man crew who built the house with lumber brought by schooner from Appalachicola. On his later memoirs, Browning described the house as "the finest residence in the county," with large rooms, detached kitchen, and verandas on three sides. Behind this house Gillespie built a two-hole golf course, on which he played almost daily, according to Browning. In this house in October 1902 the first town council met after the Town of Sarasota was incorporated.

When John Hamilton and Blanche McDaniel Gillespie returned from their honeymoon in Scotland in July 1905, they moved into "Roseburn" on Morrill Street. In this c. 1906 photo friends are shown in front of "Roseburn." The house may have been built as early as the 1880s and was remodeled for the Gillespies. On the far side of the house a conservatory was added for Blanche Gillespie's plants. The windmill pumped water from their well into the tank located half way up the framework. (Prew School occupied this building from the late 1930s until prior to its demolition in the mid 1980s.)

The Gillespies moved into their third home in 1919 after a five year absence from Sarasota. During World War I they had lived in Scotland, where John Hamilton served with the Volunteer Force. Their new home, "Golf Hall," was on the corner of Golf Street and Links Avenue. Across Links was the nine-hole golf course Gillespie had built about fifteen years earlier and which stretched eastward almost to Tuttle Avenue. Next door was the new club house. 

The next four years, Gillespie was active in community life and promoted golf as good for business. His letter to the editor of The Sarasota Times, printed on the front page of the July 10, 1919 edition, bemoaned the fact that none of Sarasota's business and professional leaders were playing golf. "All, all are blind to the fact that to be able to play golf is, now-a-days, as essential to a business man as any other part of his education." For those not yet exposed, he observed that "the golf microbe is as catching as the 'Flu' and far more lasting!"

Gillespie was instrumental in founding the Episcopal Church in Sarasota. He was ordained as a Deacon in the Episcopal Church and is acknowledged as the founder of The Church of the Redeemer Sarasota.

Gillespie volunteered in World War I for duty in Scotland. Because of this service to Scotland, he lost his United States citizenship. An act of Congress restored it after the war.

Mayor "Colonel " Gillespie died on the golf course near his home September 7, 1923. He is buried, alongside Blanche McDaniel Gillespie (his second wife), in the historic Rosemary Cemetery, Sarasota.




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http://www.sarasotahistoryalive.com/history/markers/john-hamilton-gillespie/


http://www.sarasotahistoryalive.com/history/articles/the-homes-of-john-hamilton-gillespie/


https://en.wikipedia.org/wiki/John_Hamilton_Gillespie




Opportunity Zones





Four areas of City of Sarasota designated ‘Opportunity Zones’ for investment


Revitalization encouraged under aegis of federal program



This map shows the four zones. Image courtesy City of Sarasota

Four economically distressed areas of the city of Sarasota soon could see long-term investment and job creation after being designated “Qualified Opportunity Zones” under the federal Tax Cuts and Jobs Act of 2017, the city has announced.
The federal program “helps to revitalize low-income communities by providing tax advantages for private individuals and corporations” that invest in an Opportunity Zone Fund, a city news release explains. The program “encourages the private sector to reinvest capital gains from other investments into businesses and start-ups located in these Qualified Opportunity Zones,” the release adds.

Click to read the full article:


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The Federal Government enacted major new legislation to spur economic development. Opportunity Zones are designed to spur economic development by providing substantial tax benefits to investors. 
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IRS Info

Q. What is an Opportunity Zone?

A. An Opportunity Zone is an economically-distressed community where new investments, under certain conditions, may be eligible for preferential tax treatment. Localities qualify as Opportunity Zones if they have been nominated for that designation by the state and that nomination has been certified by the Secretary of the U.S. Treasury via his delegation of authority to the Internal Revenue Service.


Q. How were Opportunity Zones created?

A. Opportunity Zones were added to the tax code by the Tax Cuts and Jobs Act on December 22, 2017.

Q. Have Opportunity Zones been around a long time?

A. No, they are new. The first set of Opportunity Zones, covering parts of 18 states, were designated on April 9, 2018. Opportunity Zones have now been designated covering parts of all 50 states, the District of Columbia and five U.S. territories.  


Q. What is the purpose of Opportunity Zones?

A. Opportunity Zones are an economic development tool—that is, they are designed to spur economic development and job creation in distressed communities.


Q. How do Opportunity Zones spur economic development?

A. Opportunity Zones are designed to spur economic development by providing tax benefits to investors. First, investors can defer tax on any prior gains invested in a Qualified Opportunity Fund (QOF) until the earlier of the date on which the investment in a QOF is sold or exchanged, or December 31, 2026. If the QOF investment is held for longer than 5 years, there is a 10% exclusion of the deferred gain. If held for more than 7 years, the 10% becomes 15%.  Second, if the investor holds the investment in the Opportunity Fund for at least ten years, the investor is eligible for an increase in basis of the QOF investment equal to its fair market value on the date that the QOF investment is sold or exchanged.


Q. What is a Qualified Opportunity Fund?

A. A Qualified Opportunity Fund is an investment vehicle that is set up as either a partnership or corporation for investing in eligible property that is located in a Qualified Opportunity Zone. 


Q. Do I need to live in an Opportunity Zone to take advantage of the tax benefits?

A. No. You can get the tax benefits, even if you don’t live, work or have a business in an Opportunity Zone. All you need to do is invest a recognized gain in a Qualified Opportunity Fund and elect to defer the tax on that gain.


Q. I am interested in knowing where the Opportunity Zones are located. Is there a list of Opportunity Zones available?

A. Yes. The list of designated Qualified Opportunity Zones can be found at Opportunity Zones Resources and in the Federal Register at IRB Notice 2018-48.  Further a visual map of the census tracts designated as Qualified Opportunity Zones may also be found at Opportunity Zones Resources.


Q: What do the numbers mean on the Qualified Opportunity Zones list, Notice 2018-48? 

A: The numbers are the population census tracts designated as Qualified Opportunity Zones.


Q: How can I find the census tract number for a specific address? 

A: You can find 11-digit census tract numbers, also known as GEOIDs, using the U.S. Census Bureau’s Geocoder.  After entering the street address, select ACS2015_Current in the Vintage drop-down menu and click Find.  In the Census Tracts section, you’ll find the number after GEOID.


Q. I am interested in forming a Qualified Opportunity Fund. Is there a list of Opportunity Zones available in which the Fund can invest?

A. Yes. The list of designated Qualified Opportunity Zones in which a Fund may invest to meet its investment requirements can be found at Notice 2018-48.


Q. How does a corporation or partnership become certified as a Qualified Opportunity Fund?

A. To become a Qualified Opportunity Fund, an eligible corporation or partnership self-certifies by filing Form 8996, Qualified Opportunity Fund, with its federal income tax return. Early-release drafts of the form and instructions are posted, with final versions expected in December. The return with Form 8996 must be filed timely, taking extensions into account.


Q: Can a limited liability company (LLC) be an Opportunity Fund?

A: Yes.  A LLC that chooses to be treated either as a partnership or corporation for federal tax purposes can organize as a Qualified Opportunity Fund.


Q.  I sold some stock for a gain in 2018, and, during the 180-day period beginning on the date of the sale, I invested the amount of the gain in a Qualified Opportunity Fund.  Can I defer paying tax on that gain?

A. Yes, you may elect to defer the tax on the amount of the gain invested in a Qualified Opportunity Fund. Therefore, if you only invest part of your gain in a Qualified Opportunity Fund(s), you can elect to defer tax on only the part of the gain which was invested.


Q. How do I elect to defer my gain on the 2018 sale of the stock?

A.  You may make an election to defer the gain, in whole or in part, when filing your 2018 Federal Income Tax return. That is, you may make the election on the return on which the tax on that gain would be due if you do not defer it. 


Q. I sold some stock on December 15, 2017, and, during the required 180-day period, I invested the amount of the gain in a Qualified Opportunity Fund.  Can I elect to defer tax on that gain?

A. Yes. You make the election on your 2017 return. Attach Form 8949, reporting Information about the sale of your stock. Precise instructions on how to use that form to elect deferral of the gain will be forthcoming shortly. 


Q. Can I still elect to defer tax on that gain if I have already filed my 2017 tax return?

A. Yes, but you will need to file an amended 2017 return, using Form 1040X and attaching Form 8949.


Q. How can I get more information about Opportunity Zones?

A. Over the next few months, the Treasury Department and the Internal Revenue Service will be providing further details, including additional legal guidance, on this new tax benefit. More information will be available at Treasury.gov and IRS.gov.