Cherry Bekaert has requested more information from the IRS concerning guidance on the new Opportunity Zones Program. Many of our clients have expressed interest in either sponsoring Qualified Opportunity Fund (“QOF”) or investing in one or more QOFs in the near future. There are many questions that need guidance, including eligibility of ordinary gains for tax incentives under IRC §§1400Z-2(a), (b) and (c), “Special rules for capital gains invested in opportunity zones”; determination of basis in an investment in a QOF organized as a partnership; and proper interpretation of statutory requirements for QOFs under IRC §1400Z-2(d).
While there is a large interest from investors and fund managers in the Opportunity Zones Program, lack of guidance prevents them from taking the next steps. We hope that this request for timely information will result in the issuance of additional details for clarity moving forward.