New Opportunity Zones Guidance from IRS Clarifies Key Provisions of Program

Contact: Jennifer Tolsky, Partner, Gould & Ratner
Posted Jul 1, 2019

From its recent inception, the Qualified Opportunity Zone program has generated a lot of interest from potential investors, but many have waited until receiving further guidance from the Internal Revenue Service about how, exactly, a variety of aspects of the program will be handled.

As of April 17, 2019, the waiting is over, with the second – and apparently final – set of proposed regulations for the QOZ program issued by the IRS. Depending on what investors are seeking, the new rules might push their participation from neutral into full steam ahead.

A quick refresher: QOZs were created as part of the Tax Cuts and Jobs Act of 2017, providing taxpayers with a way to defer recognition of capital gains through an investment in a qualified opportunity fund (QOF), which in turn invests in designated QOZs. Click here to see prior coverage from Gould & Ratner.

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