For tangible property to qualify as QOZBP, a QOZB generally must purchase tangible property from an unrelated party and either place the property in service in an OZ for the first time or make substantial improvements. At least 70% of a QOZB's tangible property must meet the requirements for qualified opportunity zone business property (QOZBP) (70% asset test).The following are two of these requirements: IRC Section 1400Z-2 and the final regulations require businesses to meet several requirements to qualify as a QOZB. The final regulations became effective on March 13, 2020. How Qualified Opportunity Funds (QOFs) and QOZBs can invest in OZs.When gains may be excluded from taxable income.The types of gains that may be invested and the timing for that investment.Topics addressed in the final regulations include:
The IRS published final regulations ( TD 9889) on OZs in January 2020 (see Tax Alert 2020-0056) and corrections ( 86 FR 19082) in April 2020 (see Tax Alert 2020-0992). The August 2021 corrections are effective on August 5, 2021, and apply on or after Janu. The August 2021 corrections primarily address the working capital safe harbor for Qualified Opportunity Zone Businesses (QOZBs). On August 5, 2021, Treasury released corrections ( 86 FR 42716 and 86 FR 42715) (the August 2021 corrections) to the final qualified Opportunity Zone (OZ) regulations ( TD 9889). IRS corrects opportunity zone regulations
