New Opportunity Zone Regulations Are Here
The long-awaited regulations are finally here! The second set of proposed regulations around the Opportunity Zone regulations have gone through their final review and are set to be released. There was some thought that they may have been delayed another week or two, but it seems that the US Treasury Office was able to swiftly overcome all the Office of Management and Budget’s (the “OMB”) comments. All of this comes just in time for the White House’s summit on the Opportunity Zone legislation.
This second round of regulations is set to address the big ticket outstanding issues: (1) the treatment of multi-asset funds and whether an elegant exit will be allowed; (2) how debt financed distributions will be taxed and impact the treatment of Opportunity Zone investments; and (3) whether the gains recognized during the life of an Opportunity Zone fund can be recycled back into other qualifying Opportunity Zone investments. The solutions to these issues should open the Opportunity Zone business community to move full steam ahead now!
Look forward for future communication for our thoughts on the regulations and how they will be impacting the Opportunity Zone business community!