Opportunity Zone Election Form

1 2020 page 2 part iv line 14 penalty if you checked no in part iii line 14 complete part iv to figure the penalty.

Opportunity zone election form. In addition a corporation or partnership files form 8996 annually to report that the qof meets the 90 investment standard of section 1400z 2 or to figure the penalty if it fails to meet the investment standard. It is also used to annually report whether the qof met the investment standard during its tax year. 23 the election is made on form 8949 sales and other dispositions of.

They are intended to provide a basic understanding and awareness of opportunity zones. A corporation or partnership uses form 8996 to certify that it is organized to invest in qoz property. Opportunity zone faqs opportunity zones td 9889 oz final regulation proposed regulation 115420 18 proposed regulation 120186 18 revenue procedure 2018 16 pdf revenue ruling 2018 29 pdf form 8949 sale and other dispositions of capital assets.

Enter the number from line 8 below on part iii line 14. The following questions and answers q as were prepared in response to inquiries that have been proposed to the irs. A taxpayer realizes an eligible gain.

These q as do not constitute legal authority and may. Use form 8996 to certify that the corporation or partnership is a. When electing to defer a capital gain through an opportunity fund the taxpayer would report the capital gain on irs form 8949 in the standard manner but include an additional irs form 8949 to report the deferral of capital gain in the following manner.

Use form 8996 to certify that the corporation or partnership is a qualified opportunity fund qof. A taxpayer must affirmatively elect to defer eligible gain. The life cycle of an opportunity zone investment can be represented at a high level as follows.

And to top it all off in the past year i ve been interviewed by two opportunity zone podcasts which is worthy of note only because it establishes that there are multiple opportunity zone. Use part i and check box c if deferring short term capital gains. In december 2019 the irs issued final regulations under internal revenue code irc section 1400z 2 for investing in qualified opportunity funds qofs.