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Latest Proposed Regulations Provide Needed Guidance on the Working Capital Safe Harbor | Sullivan & Worcester


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Nestled within the new proposed regulations issued by the IRS on April 12 (the Proposed Regulations ) that mainly address foreign investors is needed relief for current Opportunity Zone projects.
Under the statute, a Qualified Opportunity Zone Business ( QOZB ) must hold less than 5% of its assets as nonqualified financial property, which includes various financial instruments but does not include (i) reasonable amounts of working capital held in cash, (ii) cash equivalents, or (iii) short-term debt. The current Opportunity Zone regulations (the “Regulations”) provide a working capital safe harbor that treats working capital as reasonable for the purposes of the statute if certain requirements are met. In general, the working capital must be subject to a written schedule for its expenditure within 31 months (the Written Plan ). Further, the working capital must be spent in a manner that is substantial ....

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Tax Facts: The Future Of Opportunity Zones - Tax


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Tax Facts is the newest podcast from Buchanan Ingersoll &
Rooney all about the world of tax law and new changes that affect
businesses and investors alike.
On our first episode, Lisa Starczewski and Lafe Metz of Buchanan
Ingersoll & Rooney discuss the world of Opportunity Zones,
important deadlines for the program, and what the future holds for
this valuable tax-incentive-laden investment tool.
Lisa Starczewski is a shareholder at Buchanan and chair of the
firm s Tax section as well as its Opportunity Zones Team. Lafe
Metz is also a shareholder at Buchanan and chair of the firm s ....

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The Future Of Opportunity Zones - Tax - United States


To print this article, all you need is to be registered or login on Mondaq.com.
Tax Facts is the newest podcast from Buchanan Ingersoll &
Rooney all about the world of tax law and new changes that affect
businesses and investors alike.
On our first episode, Lisa Starczewski and Lafe Metz of Buchanan
Ingersoll & Rooney discuss the world of Opportunity Zones,
important deadlines for the program, and what the future holds for
this valuable tax-incentive-laden investment tool.
Lisa Starczewski is a shareholder at Buchanan and chair of the
firm s Tax section as well as its Opportunity Zones Team. Lafe
Metz is also a shareholder at Buchanan and chair of the firm s ....

United States , Tim Scott , Ingersoll Rooney , Buchanan Ingersoll , Cory Booker , Lisa Starczewski , Lafe Metz , Sean Parker , Trump Administration , Biden Administration , Opportunity Zone Program , Opportunity Zones Team , Opportunity Zones Program , Zone Program , Innovation Group , Opportunity Fund , Tax Facts , Opportunity Zones , Real Estate , Opportunity Zone , Qualified Opportunity Zones , Qualified Opportunity , Qualified Opportunity Fund , Qualified Opportunity Zone Businesses , Qualified Opportunity Zone Business , Tax Cuts ,

Internal Revenue Service Provides Additional COVID-19 Related Relief for Opportunity Zones Investors | Sullivan & Worcester


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On January 19, 2021, the Internal Revenue Service (“IRS”) issued Notice 2021-10 (the “Notice”), which provides relief for Opportunity Fund investors from certain deadlines and testing requirements. The relief provided by the Notice extends prior relief granted by the IRS in 2020 to Opportunity Fund investors and is a response to the ongoing COVID-19 pandemic.
Extension of 180-Day Investment Requirement
Under section 1400Z-2(a)(1) of the Internal Revenue Code of 1986, as amended (the “Code”), taxpayers seeking to take advantage of certain tax benefits under the Opportunity Zones statute must invest any eligible capital gains in a Qualified Opportunity Fund (“QOF”) (i) within 180 days of the date the capital gain is realized, or (ii) in the case of a pass-through entity, (x) within 180 days of the last day of the taxable year of the pass-through entity’s taxable year or (y) within 180 days of ....

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