New IRS Guidance on How to Defer Capital Gains from Stock Sales Though Investment in a Qualified Opportunity Fund
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The proposed regulations also withdraw and replace placeholder provisions in an earlier set of proposed regulations. These concern:
The definition of "substantially all"Transactions that can trigger includible gainThe timing and amount of deferred gain that is includedThe treatment of leased property used in the qualified opportunity zone (QOZ) businessThe use of QOZ business property in the QOZThe sourcing of income to the QOZ businessThe reasonable period for a QOF to reinvest proceeds from the sale of qualifying assetsIn
addition, within a few months the IRS expects to address administrative rules
for a QOP that fails maintain the requir…