Affordable Housing Blog
   
Subscribe:  
Share Print View
Opportunity Zone rules—what will they say?

The 30 member strong Nixon Peabody, LLP Opportunity Zone Working Group has blogged, written and lectured for the past 10 months about Opportunity Zones. Today Treasury has released proposed rules for what is described as a $100 billion real estate and business opportunities in 8700 low income communities around the US.

 

While some transactions have closed and others are in process, most have been on the sidelines awaiting further Treasury Department guidance.  The more potential investors looked at Opportunity Zones the more granular questions came up.  We came up with many possible answers but it is clear that without more guidance there remained a material question as to whether the IRS would agree.

 

Linked below is Forrest Milder’s article Just published setting out twenty hot topics for Opportunity Zones:  https://www.bna.com/insight-twenty-hot-n73014483463/


Over the past few weeks it became clear that regulations were coming and today Treasury released an outline and Regs are shortly to follow.  The Regs are now out at:  

https://www.irs.gov/pub/irs-drop/reg-115420-18.pdf

 

While the Regs are out already there are reports about great solutions such as excluding  the value of the land when meeting the test to invest 100 percent of the acquisition basis of existing property.  That would make feasible projects in low income but high land cost areas.  

Comments

There are no comments yet for this post.

Privacy Policy | Terms of Use and Conditions | Statement of Client Rights
This website contains attorney advertising. Prior results do not guarantee a similar outcome. © 2018 Nixon Peabody LLP
Categories
expand 1. HUD / RD

AFHS alerts
Elderly Housing -- Section 202
FHA Insurance and Risk Sharing
Preservation - HUD OAHP and Mark to Market
RAD
Section 8 Renewal Contracts
Utility Allowance
expand 2. Local & Regional

California and West Coast
DHCD (DC)
Housing Production Trust Fund
New York and Northeast
expand 3. Energy Tax Credits

expand 4. Historic Rehabilitation Tax Credits

Historic Rehabilitation Tax Credits
expand 5. Low-Income Housing Tax Credits

expand 6. New Markets Tax Credits

New Markets Tax Credits
expand 7. Real Estate

Tax
expand 8. Specialty

Freddie Mac
LGBT Housing
Sequestration
Tax-exempt Entities
expand 9. Video

Video