from: Grant Thornton April 18, 2019
The IRS released its second set of proposed regulations implementing the new opportunity zone tax incentives on April 17, and the largely generous rules will make it easier for taxpayers to use asset sales to exit funds and use leased property within a fund, even when leased from related parties.
Opportunity zones were created by the Tax Cuts and Jobs Act to encourage investment in specific geographic areas. Taxpayers investing in qualified opportunity funds (QOFs) can defer and even exclude capital gain if they meet certain requirements. The new proposed regulations (REG-120186-18) clarify parts of the proposed regulations issued in October (Reg-115420-18), and address many of the other significant unresolved questions. Some of the most important developments include: –more–