The U.S. Treasury Department and IRS today issued a version of final regulations (T.D. 9889) concerning the opportunity zones tax incentive as enacted by the 2017 tax law (Pub. L. No. 115-97)—the law that is often referred to as the “Tax Cuts and Jobs Act” (TCJA).
The opportunity zone tax incentive generally offers capital gains tax relief for investments made in economically distressed areas.
Read the final regulations [PDF 1.33 MB] (544 pages)
According to an IRS release—IR-2019-212 (December 19, 2019)—the final regulations:
The IRS also noted that forms, instructions, and other information taxpayers need to take advantage of this update will be made available in January 2020.
The Treasury release includes a set of “frequently asked questions” (FAQs) relating to opportunity zones.
The version of the final regulations released by Treasury and the IRS today includes this statement:
This document will be submitted to the Office of the Federal Register (OFR) for publication. The version of the final rule released today may vary slightly from the published document if minor editorial changes are made during the OFR review process. The document published in the Federal Register will be the official document.
The purpose of this report is to provide text of the final regulations. A follow-up report of initial impressions about these regulations will be provided by KPMG.
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