June 9, 2020
“On June 4, 2020, the Internal Revenue Service (IRS) further extended the period for some investors to reinvest capital gains into qualifying opportunity funds (QOFs) because of the continuing impact of the coronavirus pandemic.”
“Under the opportunity zone incentive described in Section 1400Z-2 and associated regulations (Incentive), a taxpayer with capital gain resulting from the sale of property (including, for example, real estate, stock, fine art, etc.) to an unrelated person could, among other potential benefits, defer paying taxes on any portion of that gain that is reinvested into a QOF within 180 days of the sale. Pursuant to the new relief described in Notice 2020-39, if a taxpayer’s 180th day would have fallen on or after April 1, 2020, and before December 31, 2020, the taxpayer now has until December 31, 2020, to reinvest the gain into a QOF to qualify for the Incentive.”
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