Shearman & Sterling LLP multinational law firm headquartered in New York City, United States.

Real Estate, Manhattan Skyline

Oct 19, 2018

Opportunity Zones: Treasury and IRS Issue Proposed Regulations

Subscribe

Jump to...

 

The Treasury Department and the IRS issued today highly anticipated proposed regulations regarding “Qualified Opportunity Zones.” The Qualified Opportunity Zone regime was introduced as part of the Tax Cuts and Jobs Act of 2017 to encourage private investment in distressed communities. Under the regime, investors that wish to defer capital gains recognized upon a sale or exchange of an asset to an unrelated party (and to derive other tax benefits) can invest that gain in a Qualified Opportunity Fund, which in turn invests in so-called “Qualified Opportunity Zone Property.”

Since its enactment, industry participants have been eagerly awaiting the release of Treasury regulations to address many of the uncertainties regarding the application and implementation of the regime, particularly regarding how an entity will qualify as a Qualified Opportunity Fund. We are closely analyzing these proposed regulations and will be issuing in the near future a detailed analysis. If you have any questions regarding the proposed regulations or Qualified Opportunity Funds generally, please contact any of the following:

Authors and Contributors

Lisa M. Brill

Partner

Real Estate

+1 212 848 4571

+1 212 848 4571

New York

Laura Friedrich

Partner

Investment Funds

+1 212 848 7411

+1 212 848 7411

New York

Michael Shulman

Partner

Tax

+1 212 848 8080

+1 212 848 8080

New York

Derek Kershaw

Counsel

Tax

+1 212 848 7964

+1 212 848 7964

New York