Frank McGrew of McNally Capital on New Opportunity Zone Clarifications
The Treasury Department has clarified key aspects of investing in OZs, including tax filing and timing, although some areas remain undefined.
Frank McGrew, managing partner at McNally Capital, returned to the podcast to discuss new guidance from the U.S. Treasury Department for investing in opportunity zones, including tax filing, the time period in which investments must be made, and stipulations for investing in operating businesses.
The 2017 Tax Cuts and Jobs Act created the opportunity zone program, which incentivizes investors to deploy capital gains into economically disadvantaged areas. By investing in opportunity zones, family offices and private equity firms can benefit from tax benefits for recently realized capital gains.
McGrew highlighted several of the key updates provided by the Treasury Department and outlined areas of the program that remain undefined. Additional analysis is available on McNally’s website.
Further guidance is expected at a hearing hosted by the Treasury Department and the IRS on Jan. 10, 2019, following a request for comment period.
McGrew provided an overview of opportunity zones and their benefits on an earlier episode of the podcast, released Oct. 23.
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** McNally Capital and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for information purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction.**
