Qualified Opportunity Zone Proposed Regulations Released– October 19, 2018 by Adam Hill

The long-awaited proposed guidance regarding Qualified Opportunity Zones was released today. Included are clarifications relating to the type of gains that may be deferred, the timing of the investment in Qualified Opportunity Funds (QOF), the election to defer specified gains, and regulations applicable to QOFs.

The proposed guidance provides reassurance that the tax benefits will be preserved even after the qualified opportunity zone designations are scheduled to sunset. It also specifies who can make an election to defer gain. Clearly, there is a lot of information to be digested and interpreted. Cohen & Company will be reviewing the proposed regulations and the corresponding revenue rule in detail, so stayed tuned.