New IRS FAQ Permits Section 1231 Gains Invested in a QOF During 2018 to Be a Qualifying Investment

Qualified Opportunity Zones Update

Date: July 01, 2019

Publication: Thompson Hine

The second round of proposed regulations states that Section 1231 capital gains can only be available for investment in a QOF to the extent of the 1231 net capital gain amount and that the period for investment commences on the last day of a tax year.  A recent updated IRS FAQ provides relief for certain 2018 Section 1231 capital gain.  In general, Section 1231 property is depreciable property and real property used in a business, but does not include land held for investment. Read more.

For more information, please contact Frank Ferrante, Alexis Kim, or any member of the firm’s Qualified Opportunity Zones group.

Francesco A. Ferrante
Thompson Hine LLP
Phone: 937.443.6740
Mobile: 937.470.0598

Alexis J. Kim
Thompson Hine LLP
3900 Key Center
127 Public Square
Cleveland, OH 44114
Phone: 216 566-5732
Mobile: 216-385-3493