Treasury Guidance May Shield Opportunity Zone Transfers From Capital Gains Tax
Posted on Oct 12, 2018 in Individual Taxation
In a conversation with reporters, Senator Tim Scott, who helped draft the Tax Cuts and Jobs Act, stated that he has encouraged Treasury and the IRS to adopt guidance that would allow investors to transfer funds between opportunity zones without subjecting the transfers to federal capital gains tax. His comments are in reference to new section 1400Z-2 of the Code, which was added by the Tax Cuts and Jobs Act and allows deferral of certain gains arising from investments in opportunity zones. Without such guidance, transfers of investments between opportunity zones may not qualify for deferral and could be subject to tax.
Read more: Opportunity Zone Transfers May Avoid Tax, Lawmaker Says