Proposed Regulations on Opportunity Zones Released

Filed in Tax Reform Toolkit by on October 19, 2018 11 Comments

The Treasury Department and IRS today released the long-awaited proposed regulations for implementing opportunity zones, a new type of economic development incentive created by the Tax Cuts and Jobs Act of 2017. Public comments on the proposed regulations will be accepted over the next 60 days.

In addition to the proposed regulations, the Treasury Department and the IRS issued additional guidance to aid taxpayers participating in a Qualified Opportunity Zone Fund (QOF).  Rev. Rul. 2018-29 provides guidance for taxpayers on the “original use” requirement for land purchased after 2017 in qualified opportunity zones. Treasury and the IRS also released Form 8996, which investment vehicles will use to self-certify as QOFs.

Opportunity zones are designed to incentivize investment and economic development in under-served communities. Developers may use a Qualified Opportunity Zone Fund to help fund projects located within an opportunity zone. This new source of investment dollars could prove to be a powerful economic tool if properly administered.

NAHB will thoroughly review the proposed regulations and provide additional information in the near future.

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Comments (11)

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  1. Richard Casada says:

    Yes, I am especially interested in any new building or real estate opportunities in rural markets

  2. Mack Andrews says:

    I currently own several properties that I plan to redevelop in the future that are in an opportunity zones located very close to the university of Memphis. Any information that you could provide would be much appreciated!

  3. How will market feasibility for proposed specific real estate development and investment projects be determined?

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