Daily Tax Report: State

Opportunity Zone Advocates Push for Covid-19 Relief on Deadlines

April 7, 2020, 7:53 PM

A group of investors, consultants, developers, law firms, and others is pressing IRS and Treasury officials to ease deadlines for opportunity zone investors in light of disruptions caused by the coronavirus pandemic.

President Donald Trump’s March 13 national emergency declaration gives the Treasury Department and Internal Revenue Service authority to extend deadlines, the group, led by accounting and advisory firm Novogradac & Co. LLP, said in a letter Tuesday.

  • The group wants extended deadlines in three areas: for opportunity funds to pass a crucial test of their assets; the periods in which investors must spend their money and improve their property; and the time investors have to plug their capital gains into a fund to get the 2017 tax law’s coveted tax breaks.
  • The 2017 tax overhaul let investors with profits from stocks, real estate, and other assets defer and reduce their capital gains tax liabilities by pouring the money into opportunity funds that finance projects in roughly 8,800 census tracts nationwide.
  • The Economic Innovation Group, which studies and helped create the incentives, sent a similar letter last week.

To contact the reporter on this story: Lydia O'Neal in Washington at loneal@bloombergtax.com

To contact the editors responsible for this story: Patrick Ambrosio at pambrosio@bloombergtax.com; Sony Kassam at skassam1@bloombergtax.com

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