The IRS has provided procedures for designating population census tracts as Qualified Opportunity Zones for purposes of Code Secs. 1400Z-1 and 1400Z-2, as added by the Tax Cuts and Jobs Act of 2017 (P.L. 115-97).
Qualified Opportunity Zones
Under the new provision, certain realized gains may be temporarily deferred. However, the corresponding amounts must be invested in a partnership or corporation organized to invest in qualified property within a Qualified Opportunity Zone. A population census tract may be designated a Qualified Opportunity Zone if:
- it is a low-income housing community; or
- is contiguous to a low-income housing community and meets certain additional requirements.
Nominations for Qualified Opportunity Zone status must be made by March 21, 2018. However, states may request a 30-day extension, which must be granted before the March deadline. The IRS will send specific information on the nomination process and an on-line Nomination Tool to the Chief Executive Officer of each State.
Rev. Proc. 2018-16
Go to Source
Powered by WPeMatico