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IRS Provides Qualified Opportunity Zones Nomination Procedures (Rev. Proc. 2018-16) – Tax & Accounting Blog

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:

  1. it is a low-income housing community; or
  2. 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

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Author: CCHTaxGroup

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