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Notice 2019-42: Opportunity zones designated in Puerto Rico

Opportunity zones designated in Puerto Rico

The IRS today released an advance version of Notice 2019-42 that adds two additional census tracts in Puerto Rico to the list of designated qualified opportunity zones (QOZs).


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Notice 2018-48 (June 2018) lists the population census tracts designated by the Treasury Secretary as qualified opportunity zones.

Notice 2019-42 [PDF 60 KB] amplifies Notice 2018-48 and reflects the two additional census tracts in Puerto Rico that are added to the list of population census tracts designated as QOZs under section 1400Z-1, effective on December 22, 2017.


The 2017 U.S. tax law (Pub. L. No. 115-97) generally provides for the temporary deferral and potential for partial exclusion of gains reinvested in a qualified opportunity fund and the permanent exclusion of gains from the sale or exchange of an investment held for at least 10 years in a qualified opportunity fund. 

  • A qualified opportunity fund is an investment vehicle self-certified by the taxpayer as a qualified opportunity fund, and organized as a corporation or a partnership for the purpose of investing in and holding at least 90% of its assets in qualified opportunity zone property. 
  • Qualified opportunity zone property includes any qualified opportunity zone stock, any qualified opportunity zone partnership interests, and any qualified opportunity zone business property.  


For more information, contact a tax professional with KPMG’s Washington National Tax:

Susan Reaman | + 1 (202) 533-3541 |

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