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IRS, Treasury Issue Final Opportunity Zone Guidance
The Internal Revenue Service (IRS) and U.S. Department of the Treasury issued their final Opportunity Zone guidance, providing more detail and clarification. The regulations combine and update first and second tranches of guidance, in October 2018 and April 2019.
These regulations
- Provide additional guidance for taxpayers eligible to make an Opportunity Zone election to temporarily defer inclusion in gross income of certain eligible gain.
- Address taxpayers’ eligibility to increase basis in the qualifying investment, equal to the fair-market value of the investment on the date that it is sold, after the equity interest has been held for at least 10 years.
- Permit deferral of all or part of a gain that would otherwise be included in income, as long as corresponding amounts are invested into a Qualified Opportunity Fund (QOF).
- Outline requirements that must be met to qualify as a QOF, as well as requirements an entity must meet as a QOZ business.
For comments, questions or concerns, please contact Amy Sorter
