Last week, the IRS issued a second round of regulations related to the Qualified Opportunity Zone Program. This follows a first round of regulations that were released in October 2018. The new regulations provide more clarity and help answer some persisting questions.
Here are a few of the common questions:
The answers to these questions are provided by RubinBrown’s own Tony Nitti. Tony authors a column in Forbes, as well as provides training on the tax laws to practitioners across the country.Click here to read Tony Nitti’s recent article in Forbes.
- What is a “trade or business” for purposes of the opportunity zone incentive?
- How do we decide when and how we can defer Section 1231 gains?
- What is the definition of “substantially all” for purposes of qualified opportunity zone stock, partnership interest, and property?
- Is raw land considered QOZBP?
- Can a QOF or QOZB lease property and have it meet the definition of QOZBP?
- What types of events will trigger deferred gain during an investors holding period in a QOF?
- Does an investor have to sell the equity interest in a QOF after ten years, or can the QOF sell its assets with the gain still being tax-free to the investor?
- What happens to an investor if a QOF sells some of its QOZBP during the ten-year holding period?
- How does an operating business pass the "more than 50% test?"
- How does the "original use" test work if you purchase a yet-to-be completed building or a building that has been vacant for years?
Click here to listen to Tony Nitti’s podcast that was posted on OpportunityDb.com.RubinBrown was also honored to be a part of a panel discussion on opportunity zones at the Impact Investing Symposium at Washington University on April 25. Click here to check out the agenda.
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