Posts Authored by M. Shannon Martin

Treasury Department and Internal Revenue Service release guidance for Opportunity Zone incentive

The Treasury Department has released guidance for the new opportunity zone (OZ) tax incentive, which addresses gains invested in qualified opportunity funds (QOF), and has also released special rules for capital gains invested in opportunity zones. For more, read the full guidance and the special rules.

Economic Development, Federal Updates, Financial Incentives

Opportunity Zone program stimulates development in distressed communities

A new federal program will encourage investment in distressed communities — Opportunity Zones — through tax incentives (see our April 10, 2018 blog post). The Opportunity Zone program allows taxpayers who invest in low-income areas specifically designated by the state and federal government to take advantage of up to three benefits: a temporary deferral, a reduction in gain realized through basis adjustment, and exclusion for capital gains on the investment. To qualify for these benefits, the investment must take place through a designated Opportunity Fund, an entity organized to acquire and hold for investment purposes equity interests in businesses or properties in Opportunity Zones. Ohio has 320 designated Opportunity Zones; there are 8,000 nationwide. For more, read our full article.

Economic Development, Federal Updates, Financial Incentives, State Updates