Qualified Opportunity Funds - Initial Proposed Regulations

Hawkins Advisory


On October 19, 2018, proposed regulations providing preliminary guidance in connection with Opportunity Zone investments were released by the Department of the Treasury and the Internal Revenue Service. These proposed regulations are expected to be expanded and supplemented in the near future; taxpayers are permitted to rely on the proposed regulations if they are applied in their entirety and in a consistent manner.

UPDATE: On November 14, 2018 the IRS released Draft Instructions for Form 8949, Sales and other Dispositions of Capital Assets.

UPDATE: On December 28, 2018 the IRS issued corrections to proposed rules that would provide guidance under new tax code Section 1400Z-2 relating to gains that may be deferred as a result of a taxpayer’s investment in a qualified opportunity fund.

UPDATE: On January 7, 2019, the IRS released Form 8996, Qualified Opportunity Fund.

UPDATE: On January 22, 2019, the IRS released the Instructions for Form 8996, Qualified Opportunity Fund.

The list of designated Qualified Opportunity Zones can be found at Opportunity Zones Resources and in the Federal Register at IRB Notice 2018-48

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