In June, we discussed guidance issued by the Internal
Revenue Service ("IRS"), which extended several key
Opportunity Zone deadlines because of concerns related to
COVID-19. Because of the ongoing pandemic and its effect on
the Opportunity Zone Initiative, the IRS has again extended those
deadlines, as detailed below:
Extension of Time to Invest Capital Gains into
Opportunity Zone Funds. Previously, any taxpayer
whose 180-day deadline to invest eligible capital gain into a
Qualified Opportunity Fund ("QOF") fell between April 1,
2020 and December 31, 2020 had until December 31, 2020 to invest.
Under this new guidance, any 180-day deadline ending between April
1, 2020 and March 31, 2021 is now extended to March 31, 2021. As a
result, some investors will have up to 14 additional months to
invest their capital gains into a QOF from their original 180-day
deadline that would have run without COVID relief.
