Opportunity Zone UPDATE 10.22.18

By Adam R. Sanders, Member

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Ready, Set, G-OZ! The first Treasury guidance regulations are out and they addressed questions regarding, among others:

  1. The type of gain permitted,
  2. The taxpayers that are eligible,
  3. How to deal with partnership gains,
  4. Permitted structures of a Qualified Opportunity Zone Fund and the time frame to designate as a Qualified Opportunity Zone Fund,
  5. Working capital deployment time frames and
  6. How to value a Qualified Opportunity Zone Fund's investment in Qualified Opportunity Zone Property and Qualified Opportunity Zone Business Property.

Treasury is already preparing additional guidance regulations and has requested questions and comments. All in all, the guidance will provide developers, real estate owners and investors with comfort to buy, develop and invest while providing and/or receiving the program's tax deferral benefits. While we prepare a more comprehensive practical (non-technical) analysis, please feel free to reach out to me to discuss. Together, we remain on the cutting edge of all aspects of the Opportunity Zone program.