IRS Releases Round 2 of Proposed Regulations Clarifying Qualified Opportunity Zone Program

The IRS and the U.S. Department of the Treasury released round two of proposed regulations surrounding the Qualified Opportunity (QO) Zone Program today. The 169-pages of regulations address many areas, including:

• How businesses headquartered in designated QO Zones may benefit,
• The timeline for QO Zone Funds to sell qualifying investments and reinvest in other QO Zone investments,
• Whether triple net leases are active trades or businesses,
• Whether vacant properties can satisfy the original use test, and more.

This much-anticipated round of proposed regulations aims to help investors take full advantage of the new federal program and should make a big impact in 2019. Look for more comprehensive coverage of the regulations available on our site soon.
 

Please contact Dave Sobochan at dsobochan@cohencpa.com, Adam Hill at ahill@cohencpa.com or Angel Rice at arice@cohencpa.com for further discussion.
 
 
Cohen & Company is not rendering legal, accounting or other professional advice. Information contained in this post is considered accurate as of the date of publishing. Any action taken based on information in this blog should be taken only after a detailed review of the specific facts, circumstances and current law.