Opportunity Zones 2.0: A New Planning Opportunity

The permanent Opportunity Zone rules under OZ 2.0 introduce a new planning strategy that may allow taxpayers to repeatedly defer eligible gains by reinvesting in a Qualified Opportunity Fund (QOF). In her latest Opportunity Knocks alert, Danielle B. Ridgely examines how this rolling deferral strategy works, including the opportunity to re-defer gains from existing OZ 1.0 investments, as well as important considerations such as restarting the QOF holding period, increased compliance requirements and potential New York State tax implications. Existing QOFs and qualified opportunity zone businesses may also need to take action before December 31, 2026 to address certain qualifying asset and improvement issues.

Please read the full article here and please contact Danielle B. Ridgely with any questions or concerns.