Much-anticipated specifics should spur investment in
new program.
The U.S. Treasury Department on October 19, 2018, released
proposed regulations and a revenue ruling concerning the
Opportunity Zone program, which was enacted as part of 2017's
Tax Cuts and Jobs Act. The program provides taxpayers that realize
capital gains and invest those gains within 180 days in a
"qualified opportunity fund" the ability to defer all,
and eliminate a portion of, that gain, and to potentially eliminate
gain on the appreciation of the investment itself. The qualified
opportunity fund must invest 90 percent of its assets in certain
qualifying businesses ("OZ Businesses") and assets in
state and federally designated opportunity zones. In addition to
other changes, the proposed regulations:
