Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Author: Scarinci Hollenbeck, LLC
Date: December 26, 2019
The Firm
201-896-4100 info@sh-law.comThe Internal Revenue Service (IRS) recently published its much-anticipated final regulations on Qualified Opportunity Funds. The regulations build on prior guidance and provide additional information on how an entity becomes a qualified opportunity fund (QOF) or qualified opportunity zone (QOZ) business, and the requirement that a QOF or QOZ business engages in a trade or business. As described by the IRS, the final regulations retain the general approach of the proposed regulations but provide additional guidance and clarity to the rules regarding QOZ business property.
The Opportunity Zone tax initiative was established under the 2017 Tax Cuts & Jobs Act, which was signed into law on December 22, 2017. The program aims to encourage investors to direct capital into new projects in certain low-income rural and urban communities in exchange for federal capital gains tax advantages.
Since taking effect, the Internal Revenue Service (IRS) has issued two rounds of proposed regulatory guidance for Qualified Opportunity Funds — the first on October 19, 2018, and the second on April 17, 2019. The final set of IRS regulations will combine the first and second rounds of guidance, as well as provide clarification on issues that remain unresolved. Not surprisingly, the final regulations are expected to top 500 pages in length.
The IRS submitted the final regulations to the White House Office of Management and Budget (OMB) on December 6, 2019. The OMB concluded its review on December 17, 2019, and the IRS published them on its website on December 19, 2019. They will not take effect, however, until they are officially published in the Federal Register.
The final opportunity zone regulations are 544 pages in length. Among the wide range of topics covered, the IRS final regulations provide guidance regarding how to determine the qualification requirements and levels of new investment in Opportunity Zones. The regulations also clarify the types of gains that qualify for Opportunity Zone investments, as well as gains that may be excluded from tax after a 10-year holding period.
Given that it is impossible to summarize the regulations in one article, below is a brief summary of several key questions the IRS has addressed:
We encourage businesses involved in opportunity zone investment to review the full IRS regulations and contract experienced counsel with any questions. Look for further blogs from Jeff Cassin and Stephanie Edelstein for more on Qualified Opportunity Zones.
If you have any questions or if you would like to discuss the matter further, please contact Scarinci Hollenbeck attorney with whom you work, at 201-806-3364.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]
Author: Brian D. Spector
Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]
Author: Christopher D. Warren
*** The original article was featured on Bloomberg Tax, April 28, 2025 — As a tax attorney who spends much of my time helping people and companies who have large, unresolved issues with the IRS or one or more state tax departments, it often occurs to me that the best service that I can provide […]
Author: Scott H. Novak
On January 28, 2025, the Trump Administration terminated Gwynne Wilcox from her position as a Member of the National Labor Relations Board (NLRB or the Board). Gwynne Wilcox, a union side lawyer for Levy Ratner, was confirmed to the Board for an original term in 2021 and confirmed again for a successive five-year term expiring […]
Author: Matthew F. Mimnaugh
Breach of contract disputes are the most common type of business litigation. Therefore, nearly all New York and New Jersey businesses will likely have to deal with a contract dispute at least once. Understanding when to file a breach of contract lawsuit and how long you have to sue for breach of contract is essential […]
Author: Brittany P. Tarabour
Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]
Author: Christopher D. Warren
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!