Updated FAQ Provides Relief for Taxpayers Who Reinvested 2018 §1231 Gains Prior to December 31, 2018

The IRS is back at modifying frequently asked questions (FAQ) on its website for TCJA related changes, this time related to the Qualified Opportunity Zone investments under IRC §1400Z-2.  But unlike the significant additions made to the §199A FAQ just before the filing deadline for 2018 returns, this time the IRS added a single question and answer to its Opportunity Zones Frequently Asked Questions page.

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IRS Releases Second Set of Proposed Opportunity Zone Regulations

The IRS issued its second set of proposed regulations dealing with Opportunity Zone issues (REG-120186-18). Tax Analysts reported in Tax Notes Today that Treasury officials had indicated in a press briefing related to the release of these regulations that they expect these will constitute the entirety of the remaining regulations for Opportunity Zones, although they did not rule out a third set of proposed regulations if it seems necessary.

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Opportunity Zone Proposed Regulations Issued

The IRS has issued proposed regulations dealing with certain aspects of qualified opportunity funds. I have a number of sessions on the East Coast I am in the middle of presenting and haven’t had time to write up a detailed outline of the regulations.

But I will cover the regulations in the audio and video podcast for October 22 that will be posted on this site (https://www.currentfederaltaxdevelopments.com/podcasts/ is the page with the most often weekly presentations).

And I have also created a copy of the IRS PDF that has Adobe bookmarks for the regulations and preamble that can make it easier to work with the document as you are planning for clients that you can download below.

Proposed Regulations for Opportunity Zones with Adobe Bookmarks.

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Opportunity Zone Proposed Regulations Sent to Office of Management and Budget for Review

The IRS has sent regulations related to capital gains invested in Opportunity Zones to the Office of Information and Regulatory Affairs of the Office of Management and Budget (RIN 1545-BP03).  The regulation is flagged as a Tax Cuts and Jobs Act regulatory action, meaning that OMB has 10 business days to complete its review of these regulations under the agency’s memorandum of agreement with the Department of Treasury.

The regulations were received by the agency on September 12, which would put the date by which OMB is supposed to finish its review prior to end of September.

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