December 31, 2019 is the final date to receive the full tax benefit of Opportunity Zone investing…
December 31, 2019 is the final date to receive the full tax benefit of Opportunity Zone (“OZ”) investing. Nonetheless, the program continues to evolve.
Opportunity Zone IMPACT Act
Senator Tim Scott (R-SC) recently introduced the Improving and Reinstating the Monitoring, Prevention, Accountability, Certification, and Transparency Provisions of Opportunity Zones (IMPACT) Act. The bill seeks to reinstate and enhance the reporting requirements surrounding OZ investments.
As described by Sen. Scott, the IMPACT Act:
Codifies requirements for Qualified Opportunity Funds to report the following information regarding the Qualified Opportunity Fund: (i) value of total assets held; (ii) location and value of OZ properties held; (iii) whether such properties are owned or leased; (iv) information surrounding disposed investments during the tax year; and (v) details regarding the location and industry classification codes of businesses receiving equity investments as well as the value of those investments. The IMPACT Act further requires reporting on number of persons employed through OZ investments, thereby providing data on job creation and firm growth without burdening small businesses and funds alike.
Codifies requirements for investors to report critical information on OZ investments including funds receiving investments, relevant dates on which investments and dispositions are made, descriptions of OZ investments, and measures that will continue to allow the IRS to track both the deferral and recognition of gains, the trajectory of OZ investments over time, and compliance more broadly.
Adds penalties for both individuals and funds that fail to accurately and appropriately file the required returns or statements and also significantly enhances penalties for any individual who attempts to take advantage of the OZ incentive for fraudulent purposes.
Requires that the Treasury make public as soon as practicable and annually thereafter timely, comprehensive information tracking Qualified Opportunity Funds and their corresponding investments into QOZs. Specifically, the Treasury shall make public in the aggregate the total number of funds, the total assets of all funds, the distribution of OZ investments across different industry classification codes, the percentage of all OZs that have received investment through the incentive, the total amount of Opportunity Fund investments made in each census tract, the distribution of investments in real property and active businesses, data deciphering the sizes of businesses receiving OZ investment, and numbers of jobs created or sustained by those businesses in light of OZ investments.
The full bill text of the IMPACT Act can be found here.
Given the continually evolving regulatory landscape, participation in the OZ Program takes an experienced legal and accounting team who is up to date on the growing field of regulations and can help you navigate them successfully.
With a multi-disciplinary team of affordable housing, real estate, tax and corporate attorneys, Scarinci Hollenbeck is uniquely qualified to help New Jersey investors navigate the new program and realize its benefits. To discuss potential opportunities for your business, we encourage you to contact us today.
If you have questions, please contact us
If you have any questions or if you would like to discuss the matter further, please contact Stephanie Edelstein, Jeffrey Cassin, or the Scarinci Hollenbeck attorney with whom you work, at 201-806-3364.
When a Child Turns 18: The Gap in Your Family’s Estate Plan
Once a child turns 18, parents lose the automatic legal authority to make medical and financial decisions on their behalf, even if the child still lives at home or remains on the family’s insurance. Three documents close that gap: a durable power of attorney, a health care proxy or directive, and a HIPAA authorization. For […]
Business Mediation: An Overview and Practical Tips
Business mediation is a confidential, voluntary process in which a neutral third party helps companies negotiate a resolution to a commercial dispute without going to trial. Because working with a mediator is very different from litigating in the courtroom, it is important to understand how commercial mediation works, when it makes sense for your dispute, […]
Top 5 Causes Leading to Construction Defect Litigation
The five most common causes of construction defect litigation are design defects, substandard materials, workmanship defects, code violations, and subsurface defects. Because these flaws can compromise a building’s integrity, functionality, or safety, they frequently lead to disputes involving multiple parties and high financial stakes. Key takeaways: What is Construction Defect Litigation? Construction litigation is complex, […]
How to Protect Your New Jersey Business When Going through a Divorce
The most effective ways to protect your business in a divorce are put in place before one begins: a prenuptial or postnuptial agreement, clean separation of business and personal finances, and divorce contingencies built into your operating or buy-sell agreements. If divorce is already underway, the priorities shift to establishing how the business is classified […]
The most common franchise disputes involve breach of contract, franchise termination and non-renewal, intellectual property rights, territorial encroachment, royalty and fee payments, franchisor support obligations, and violations of state franchise laws such as the New Jersey Franchise Practices Act. Franchisors and franchisees can often resolve these conflicts by providing written notice detailing the dispute and […]
Reputational Risk and Legal Exposure: Why New Jersey Businesses Must Manage Them Together
New Jersey businesses must manage legal and reputational risk together because modern disputes play out on two fronts at once: the legal proceeding itself and the court of public opinion, where customers, employees, investors, and business partners often reach conclusions long before a judge or jury has had the opportunity to evaluate the facts. Success […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
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!
