“BREAKING: Treasury Rules Clarify Deferral Of Gains From Opportunity Zones
By Amy Lee Rosen
Treasury Secretary Steven Mnuchin said he expects $100 billion in private capital to be dedicated toward jobs and economic development in opportunity zones. (AP)
The rules should give fund sponsors and investors the information they need to invest in opportunity zones, which are designed to provide an economic boost to low-income areas, Treasury said in a statement. The guidance also clarifies who can benefit from the investments and the parameters for opportunity funds, the vehicle investors can acquire in order to gain a tax benefit, Treasury said. Additional opportunity zone guidance will be issued before the end of the year, it added.
“We anticipate that $100 billion in private capital will be dedicated towards creating jobs and economic development in Opportunity Zones,” Treasury Secretary Steven Mnuchin said in a statement.
Under the program, an investor who sells an asset and reinvests the gains in a qualifying opportunity fund can defer taxes on the gains until Dec. 31, 2026. Also, taxes are forgiven on gains from investments held in opportunity funds for at least 10 years.”