Opportunity Zone and Qualified Opportunity Fund Guidance Released
The Tax Cuts and Jobs Act added a new section to the Internal Revenue Code that permits taxpayers with capital gains to invest in projects located within certain specified Opportunity Zones and thereby potentially defer and decrease taxes on those capital gains and exclude future related capital gains from taxation. Today, the U.S. Department of the Treasury released proposed regulations and a revenue ruling which give guidance on these investments. The guidance gives long-awaited detail on several areas related to qualified investments, funds, deferral of gain and related issues. This creates a significant opportunity for taxpayers and careful strategies should be developed to take advantage of these new regulations.