IRS offers tax relief to opportunity zone funds and investors

June 15, 2020

By Michael Cohn, Accounting Today

The Internal Revenue Service is giving investors in opportunity zone funds relief from some of the requirements in the controversial program because of the COVID-19 pandemic.

Opportunity zones were ushered in by the Tax Cuts and Jobs Act of 2017 and provide substantial tax breaks to investors who develop projects in economically distressed communities, in some cases allowing them to defer capital gains taxes indefinitely. However, many of the initial projects under development have been in gentrifying areas that were already attracting substantial real estate investment and not in truly underprivileged communities. But now with the outbreak of the novel coronavirus pandemic, businesses across the country are facing pressure, including ones in cities that had become hot areas for development.

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