Update – On Friday, October 19th, the IRS issued the first round of long-awaited guidance on investments in Opportunity Zones. The proposed regulations and related revenue ruling aim to bring clarity to many questions investors have been asking. The Treasury Department said additional guidance will be released before the end of the year, but according to one Treasury official they “felt it was important to issue the core guidance now that’s needed to get the funds up and operating and not wait until we have every question answered.”
Some highlights of the proposed regulations include:
- Clarification of gains eligible for deferral
- List of eligible taxpayers including individuals, corporations, and pass-through entities
- Clarification that qualified investments only include equity interests in a qualified opportunity fund
- Rules outlining substantial improvement requirements for land and buildings
- Release of Form 8949 in draft to elect deferral under the Opportunity Zone program
To find out more information please contact us at firstname.lastname@example.org.
The Opportunity Zone program provides major tax incentives to foster investment and growth in over 8,700 federally designated areas across the country. This program allows taxpayers to re-invest capital gains into Opportunity Funds that subsequently invest in businesses and property in these low-income rural and urban areas. This program has specific requirements to ensure compliance and BMSS has the experience and knowledge to help.
We Are Prepared to Assist You With:
- Advising on entity structure
- Tax compliance
- Tax planning
- Analysis of gain deferral
Program Incentives Include:
- Deferral of original capital gains
- Up to 15% exclusion from tax on original deferred gain
- Permanent exclusion of future appreciation for investments held 10 years
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