What Are the Opportunities in Opportunity Funds?
Talking Tax29 Okt 2018

What Are the Opportunities in Opportunity Funds?

Opportunity zones and opportunity funds were created by the 2017 tax act to encourage business investment in low-income communities. They have attracted a lot of interest because of the tax incentives, including exclusion and deferral of capital gains. IRS released proposed regulations on October 19 that gave practitioners some answers. Bradley T. Borden, a professor of law at Brooklyn Law School, and Alan S. Lederman, a shareholder at the Florida law firm of Gunster, join Bloomberg Tax’s Andrea L. Ben-Yosef in describing these opportunity zones and funds, how practitioners can take comfort in going forward with many of these transactions, what the IRS still needs to address. They also examine how these proposed regulations may influence a taxpayer’s decision to use qualified opportunity funds as a way to replace real estate that is sold on a tax-deferred basis, instead of using a Section 1031 like-kind exchange. For more information, see the article in the Bloomberg Tax Real Estate Journal, Rolling Real Estate Gain into a Qualified Opportunity Fund: Comparison with §1031, by Alan S. Lederman and and Bradley T. Borden (Sept. 5, 2018). Link: https://www.bloomberglaw.com/product/tax/document/XDPG43TG000000.

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