The Department of the Treasury (Treasury) and the Internal Revenue Service (IRS) released a new notice of proposed rule making on Opportunity Zones. The new proposed rule provides guidance relating to gains that may be deferred as a result of a taxpayer’s investment in a qualified opportunity fund (QOF), as well as special rules for an investment in a QOF held by a taxpayer for at least 10 years.
The proposed rule also makes changes to the October 29, 2018 notice of proposed rule making including: the definition of “substantially all” in each of the various places it appears in section 1400Z-2; the transactions that may trigger the inclusion of gain that a taxpayer has elected to defer under section 1400Z-2; the timing and amount of the deferred gain that is included; the treatment of leased property used by a qualified opportunity zone business; the use of qualified opportunity zone business property in the qualified opportunity zone; the sourcing of gross income to the qualified opportunity zone business; and the “reasonable period” for a QOF to reinvest proceeds from the sale of qualifying assets without paying a penalty. Comments will be due 60 days after publication in the Federal Register.
A public hearing will be held on July 9 at 10 am EDT at the New Carrollton Federal Building at 5000 Ellin Road in Lanham, Maryland 20706. To be placed on the building access list to attend the hearing contact Regina L. Johnson at (202) 317-6901.
The administration released several Opportunity Zone related documents today, NH&RA is in the process of evaluating them and will provide additional details at a later date.
