The second set of proposed regulations are promised by the end of the year. Delap is looking to address some lingering questions and will be providing updates as soon as we learn more.

Remaining Questions on Opportunity Zones

  • Are there any exceptions to the 180-day rule?
  • Does there have to be a direct investment into a Qualified Opportunity Zone or can it be indirect? Perhaps some examples or flexibility here?
  • Will a startup period be considered where the 90% test can be ignored for say the first 18 months?
  • What's reasonable cause for failing the 90% test?
  • Can the 30-month substantial improvement period be extended?
  • Will a sale be required prior to 12/31/2047 to generate the election to fair market value at that point? Perhaps an election without a sale will be allowed.

We will be following the release of the second set of proposed regulations on Opportunity Zones and we'll keep you updated as we learn more. If you have questions for Delap, please do not hesitate to give us a call at (503) 697-4118 or contact us online. Our advisors would be happy to talk with you!

Contact Us