Further Relief Granted for Opportunity Zone Investors

Opportunity zone fund managers and investors have been granted additional relief from the IRS due to the coronavirus pandemic. Opportunity Zones were created under the 2017 Tax Cuts Jobs Act to stimulate economic development and job creation, by incentivizing long-term investments in low-income neighborhoods. The current relief includes:

  • Extension of the period in which investors must invest their capital gains. If the period to invest their capital gains would have ended between April 1, 2020 and March 31, 2021, the investment period is postponed to March 31, 2021.
  • The 30-month substantial improvement requirement is further suspended during the period beginning April 1, 2020 and ending on March 31, 2021.
  • Penalties can be avoided for failing the biannual 90-percent investment standard test of the Opportunity Zone Fund’s assets between April 1, 2020 and June 30, 2021.

Please contact one of our trusted professionals to learn more about the relief mentioned above or additional relief granted in the IRS guidance.