Final Regulations Issued Implementing Opportunity Zones Tax Incentive

摘要

The Final Regulations represent a very commendable effort by the Treasury and IRS to try to provide comprehensive and workable rules to implement the Opportunity Zone program. Several hundred formal comment letters and additional taxpayer input were taken into account in promulgating the Final Regulations, and the Final Regulations incorporate many (but certainly not all) suggested provisions and requests from commenters and taxpayers. The Final Regulations are mostly taxpayer favorable, although there are some instances in which the Proposed Regulations may allow for a more taxpayer friendly result. The Final Regulations went into effect on March 13, 2020. However, taxpayers generally can choose to apply either the Proposed Regulations or the Final Regulations (as long as they are applied on a consistent basis) for all tax years beginning on or before March 13, 2020. Thus, for example, this option is available to individuals and other calendar year taxpayers for the current 2020 tax year.