Going into a new presidential administration, one of the big concerns in the investment community was the future of the Opportunity Zone (OZ) program. It was created by the 2017 Tax Cuts and Jobs Act, which was passed under a Republican administration. “These are uncertain times for any income tax laws. However, the OZ program was originally enacted with bipartisan support, and I’m not aware of any proposed discontinuation of the OZ program,” said Chris Goodrich, partner at Houston-based law firm Crady Jewett McCully & Houren. “There has been Democratic interest in imposing more stringent reporting requirements for OZ investments, but it’s not presently known what these more stringent requirements might be.” §§ 1400Z allows investors to defer, reduce, and in some cases, eliminate
capital gains tax by investing in specified low-income areas designated as qualified Opportunity Zones (OZs). They must do so by reinvesting their capital gains in Qualified Opportunity Zone funds (QOFs). State governors submitted their recommendations for OZ tracts, areas in need due to chronic unemployment, lower population density and economic disruptions, such as natural disasters. The result is more than 8,700 qualified tracts scattered around the country, including hundreds in Texas. A common question related to that list is whether it could change based on the results of the 2020 Census. “Technically, the designation of a census tract as an Opportunity Zone expires after 10 years,” said Goodrich. “But the final regulations provide that an investment in OZ property will retain its status through December 31, 2047, even though a census tract ceases to be classified as an OZ due to a future census.” Click to read more at www.rednews.com.