The IRS decided last week to extend opportunity zone deadlines into March, granting OZ investors an extra two months to work their deal around.
Several deadlines which were already assumed to have expired at the end of Dec. were granted an extension as a form of relief due to the ongoing health crisis, but are now set to lapse at the end of March. And this includes any 180-day grace period in which realized capital gains were to be placed in a qualified opportunity fund.
“I think this is something that was, for most of us in the industry, a pleasant surprise,” Javelin 19 Investments President Jill Homan told Bisnow. “Everybody was frantic in finishing deals before that deadline passed. So I thought that was bad, but clearly with the continued significant impact COVID-19 is having, the change was necessary.”Bisnow.com
Among other changes that are a result of the extension includes the discounting of the 12 months between April 1, 2020 and March 31, 2021, in determining the 30-month window to make significant improvements on opportunity zone investments. Additionally, the discounting of the 15 months between April 1, 2020 and June 30, 2021, in regards to counting time toward the 90% investment threshold for qualified opportunity funds.