Treasury, IRS issue proposed regulations on new Opportunity Zone tax incentive

Please call Kevin Sayed, J.D., LL.M., to discuss the opportunity to defer capital gains taxes, or any other tax planning and business matters.  The following materials were originally published by the IRS.

The Treasury Department and the Internal Revenue Service issued proposed regulations for the new Opportunity Zone tax incentive to clarify that almost all of the associated capital gains qualify for deferral.

Opportunity Zones, created by the 2017 Tax Cuts and Jobs Act, are designed to spur investment in distressed communities through tax benefits. A nomination process completed in June resulted in the designation of qualified Opportunity Zones in 8,761 communities in all 50 states, the District of Columbia and five U.S. territories. Investors may defer tax on almost any capital gain up to Dec. 31, 2026 by making an appropriate investment in a zone, making an election after Dec. 21, 2017, and meeting other requirements.

More information on Opportunity Zones is available on IRS.gov/taxreform. This page will also feature updates on the implementation of this and other TCJA provisions.

Click here for a complete list of Opportunity Zones.