Opportunity Zones: A New Investment Opportunity
Community Revitalization by Rewarding Private Investment
Are you interested in reviving hard-hit areas in your community? Could you use a tax benefit, too? The newly created Opportunity Zones program, enacted as part of the Tax Cuts and Jobs Act of 2017, provides an opportunity to do both.
The Opportunity Zones program, found in Sections 1400Z-1 and 1400Z-2 of the Internal Revenue Code (“IRC”), is intended to spur investment in low-income or economically disadvantaged areas.
The tax incentives provide investors with an opportunity to defer recognition of gains on sales of assets, permanently reduce a portion of the deferred gain to be recognized and permanently exempt any future gain with respect to reinvested proceeds. This occurs by reinvesting the gain in a Qualified Opportunity Fund (“QOF”), an investment vehicle specifically focused on making investments in Qualified Opportunity Zone (“QOZ”) businesses and/or property, allowing for greater diversification than other tax deferral mechanisms.
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Opportunity Zones | Legislation and Pronouncements
Proposed Regulations
IRS Guidance
Revenue Procedures
Treasury
- Designated QOZs announced 6/14 (excel spreadsheet)
- IRS press release 4/9/2018
- CDFI Fund Data (links to everything on CDFI website, including interactive map of designated QOZs
Forms
- IRS Request for Comments on Tax Forms
- Draft Form 1065
- Draft Form 1065 Instructions
- Draft Form 1120
- Draft Form 1120 Instructions
- Draft Form 1120S
- Draft Form 1120S Instructions
- Draft Form 1120-REIT
- Draft Form 1120-REIT Instructions
- Draft Form 4797
- Draft Form 4797 Instructions
- Form 8949
- Form 8949 Instructions
- Form 8996
- Form 8996 Instructions
- Opportunity Zones | Legislation
- Opportunity Zones | Research and Reports
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Opportunity Zones | Cherry Bekaert Resources
Alerts
- Cherry Bekaert Associates Attend IRS’ Opportunity Zone Hearing
- Are Qualified Opportunity Funds or 1031 Exchanges Right for Me?
- IRS Releases Proposed Regulations on Qualified Opportunity Funds
- Opportunity Zones: A New Investment Opportunity
Advocacy
- Letter sent Secretary Mnuchin on Opportunity Zones January 2019
- Letter to IRS Requesting Clarification Opportunity Zones September 2018
Webinar
Tax Reform & Qualified Opportunity Zones
Mark H. Cooter
Partner, Tax Services
Industry Leader, Real Estate & Construction Group
Managing Partner, SC Upstate Practice