taxnews.ey.comPrint

19 December 2019

BREAKING TAX NEWS | IRS releases final regulations on Opportunity Zones

The IRS released on December 19, 2019, final regulations (TD 9889) on investing in qualified Opportunity Zones (QOZs).

The IRS addressed the comments received in response to the proposed rules issued in 2018 and 2019 under IRC Section 1400Z-2 and revised the proposed regulations while retaining the basic approach.

The final regulations address:

  • What types of gains may be invested and when
  • When gains may be excluded from tax after an investment is held for 10 years
  • How a qualified opportunity fund (QOF) determines levels of new investment in a QOZ
  • How large C corporations can invest in Opportunity Zones

A Tax Alert is forthcoming. An invitation to a webcast on the regulations will be sent soon.

Document ID: 2019-9029

 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 1996 – 2025, Ernst & Young LLP

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

EY US Tax News Update Master Agreement | EY Privacy Statement