On October 19, 2018, the Internal Revenue Service released much anticipated guidance regarding opportunity zone funds. The guidance included proposed regulations, a revenue ruling (Rev. Rul. 2018-29) and a draft form (with instructions).
Although many of the noted questions remain unanswered by this guidance, there is now additional clarity around key topics such as original use and substantial improvements, as well as some very helpful information regarding which taxpayers will be allowed to defer gain and which gains can be deferred using subsequent and timely investment in a qualified opportunity zone.