U.S. Dept. of Treasury Releases Proposed Opportunity Zones & Opportunity Funds Guidance

Last Updated on Oct 24, 2018 at 10:23am | Strategic Advantages

The U.S. Department of the Treasury has released proposed regulatory guidance on Opportunity Zones and Opportunity Funds. These regulatory proposals help to clarify how investors will engage in Opportunity Zones and provide more framework for communities to understand the types of businesses and real estate projects that are eligible for investment.

The regulatory proposals address several key areas, including:
 
--The requirements that must be met by a taxpayer to defer gains by investing in an Opportunity Fund;
--The rules permitting a corporation or partnership to self certify;
--The rules regarding the requirements that must be met by a corporation or partnership to qualify as an Opportunity Fund.
 
Additionally, the IRS has released a revenue ruling addressing:
 
--The application to real property of the "original use" requirement in section 1400Z-2(d)(2)(D)(i)(II), and;
--The "substantial improvement" requirement in section 1400Z-2(d)(2)(D)(i)(II) and 1400Z-2(d)(2)(D)(ii).
 
 
Additional information about the propose regulations and revenue ruling are available at: