Novogradac Weighs in on New O-Zone Regulations

On Dec. 19, 2019, the Internal Revenue Service and U.S. Department of the Treasury issued their third and final round of guidance pertaining to Opportunity Zones. Novogradac, an audit, tax and consulting firm, has provided insight into the meaning of the recently released guidance.

“The final regulations represent a tremendous effort by Treasury to expeditiously provide regulatory guidance on the OZ incentive,” wrote blog authors John Sciarretti and Michael Novogradac. “With the release of the final regulations, we expect significantly more equity investment to be made in distressed communities across the nation.”

Sciarretti and Novogradac indicated that the updated regulations address 26 issues, broken down into the categories of investors, Qualified Opportunity Funds, Affordable housing investments in O-zones, Opportunity Zone Business Properties and Opportunity Zone Businesses. The chart, below, focuses on some of the issues that could be pertinent to real estate developers and investors.