Partner Nicole Elliott discussed several questions that have come from the Opportunity Zone Program as new proposed regulations need to be clarified. Ms. Elliott explains that for an Opportunity Zone business to qualify, the business must receive 50 percent of its income from active conduct, but there is no clear definition as to what active conduct entails. Another issue, such as how to value a tangible property if there are no financial statements or cost basis, has not yet been determined. New proposed regulations are expected to be released by the end of 2018, and several hope that they will clarify the rules more.
READ: Basis and Allocation Issues Raised in Opportunity Zone (Subscription Required)
Please note that email communications to the firm through this website do not create an attorney-client relationship between you and the firm. Do not send any privileged or confidential information to the firm through this website. Click "accept" below to confirm that you have read and understand this notice.