IRS Updates OZ Frequently Asked Questions

Monday, June 24, 2019 - 12:45PM

The Internal Revenue Service updated its Opportunity Zones Frequently Asked Questions page to affirm that a taxpayer who invests an Internal Revenue Code (IRC) Section 1231 gain into a qualified opportunity fund before the last day the 2018 tax year, but during the 180-day period beginning with the realization of an IRC Section 1231 gain, can make a valid deferral election based on that investment because the tax year ended before May 1, 2019. The election will not impair the taxpayer’s ability to rely on all other aspects of proposed regulations published May 1, 2019.

The Novogradac Opportunity Zones Working Group plans to ask Treasury to reconsider its regulations regarding IRC Section 1231 gains, and, at a minimum, ask for a transitional rule consistent with this guidance.

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