Congress enacted the Opportunity Zone (“OZ”) investment incentives in late 2017 as part of the Tax Cuts and Jobs Act. Since then many investors, fund managers, and community development professionals have devoted significant time and resources to locating and underwriting investment opportunities. The legislation left many unanswered questions – largely limiting investments to obvious qualifying businesses. The first set of proposed regulations, released October 29, 2018, provided further guidance but not enough to answer many remaining questions.
The 50% Gross ...
After months of eager anticipation, today the Department of the Treasury released regulations defining and refining certain requirements set forth in the "Opportunity Zone" law.
While the Opportunity Zone statute provided a framework for tax-deferred investments, most projects have been on hold pending the regulatory framework. The regulations released today answer many questions, while others remain unaddressed. According to today's release, more guidance will be forthcoming by the end of the year.
Some highlights of the proposed regulations include:
Substantial ...
Qualified Opportunity Zones were included as part of the Tax Cuts and Jobs Act which became law in December 2017. The zones were originally introduced as the Investing in Opportunity Act sponsored by South Carolina Senator Tim Scott and are meant to encourage investment in economically distressed communities.
Opportunity Zones have generated a lot of interest and even more questions. This alert attempts to answer the most frequently asked questions we are hearing from clients.
- What is the opportunity?
The opportunity is for investors with long-term capital gains to defer paying ...