Today the Treasury Department and the IRS released REG-115420-18, providing guidance related to section 1400Z-2 (Opportunity Zones). Treasury also released a related revenue ruling. The proposed regulations provide clarification as to:
- The type of gains that can be deferred;
- The time by which corresponding amounts must be invested in qualified opportunity funds (additional QOF guidance is also included in the proposed regulations); and
- How investors can elect to defer specified gains.
IPA tax experts are currently reviewing the proposed regulations. We will be hosting a webinar with related analysis and guidance next week, with information and registration details forthcoming later today.
For several months the IPA has represented our members as part of a comprehensive working group hosted by Novogradac & Co. The IPA has access to a variety of useful resources related to Qualified Opportunity Zones and we are pleased to share this information with our members. To access the QOZ resource library, sign in using your previously established IPA website login credentials. The resource library contains several useful documents, including:
- financial modeling of QOZs
- flowcharts of structures for creating QOZ funds
- 3rd party research on QOZs
- state level tax and QOZ participation information