IRS Sends Regulatory Guidance on Qualified Opportunity Funds to OMB

Qualified Opportunity Zone Alert

Date: September 25, 2018

On September 12, 2018, the Internal Revenue Service sent regulatory guidance on Qualified Opportunity Zones to the Office of Management and Budget’s Office of Information and Regulatory Affairs. The proposed rules are anticipated to clarify information for potential investors who have either set up Qualified Opportunity Funds or are waiting for further guidance before doing so. The OMB has 10 days to review the guidance, after which the IRS will publish the proposed and interim regulations. The IRS will then seek and review comments before publishing final regulations.

Individuals and entities who have recognized capital gains in the last six months from the sale of stock, art, real estate or other investments and are considering establishing a Qualified Opportunity Fund should consult a tax adviser.

Novogradac and Company LLP has published a mapping tool on its website showing where Qualified Opportunity Zones exist across the United States and in various U.S. territories.

We have worked with several clients who have set up Qualified Opportunity Funds to fund projects in Qualified Opportunity Zones. We can provide assistance in obtaining public/private financing for real estate development in Qualified Opportunity Zones by helping identify incentives that can be critical in assuring a positive outcome for this new tax strategy.

We will provide an update on the proposed and interim regulations when more information becomes available.

FOR MORE INFORMATION

For more information, please contact:

Tracey A. Nichols
Director of Financial Services, PMC*
216.566.5825
Tracey.Nichols@AboutPMC.com

Ryan P. Sommers, CPA
Managing Director of Financial Services, PMC*
216.566.7887
Ryan.Sommers@AboutPMC.com

Kenneth S. Kalynchuk
Senior Financial Analyst, PMC*
216.566.5832
Ken.Kalynchuk@AboutPMC.com

*Not licensed to practice law.

Project Management Consultants (PMC), a wholly owned subsidiary of Thompson Hine, advises the development community in Ohio and across the country on a broad range of incentives and government programs such as Historic Tax Credits and New Market Tax Credits. Our financial consultants provide comprehensive guidance on optimizing investments and maximizing tax-free gains on eligible projects.

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