Rule2021-16663
Investing in Qualified Opportunity Funds; Correcting Amendment
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
August 5, 2021
Effective
August 5, 2021
Issuing agencies
Treasury DepartmentInternal Revenue Service
Abstract
This document contains corrections to Treasury Decision 9889, which was published in the Federal Register on Monday, January 13, 2020. Treasury Decision 9889 contained final regulations under the Internal Revenue Code (Code) that govern the extent to which taxpayers may elect the Federal income tax benefits with respect to certain equity interests in a qualified opportunity fund (QOF).
Full Text
<html>
<head>
<title>Federal Register, Volume 86 Issue 148 (Thursday, August 5, 2021)</title>
</head>
<body><pre>
[Federal Register Volume 86, Number 148 (Thursday, August 5, 2021)]
[Rules and Regulations]
[Page 42716]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-16663]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9889]
RIN 1545-BO4
Investing in Qualified Opportunity Funds; Correcting Amendment
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Correcting amendments.
-----------------------------------------------------------------------
SUMMARY: This document contains corrections to Treasury Decision 9889,
which was published in the Federal Register on Monday, January 13,
2020. Treasury Decision 9889 contained final regulations under the
Internal Revenue Code (Code) that govern the extent to which taxpayers
may elect the Federal income tax benefits with respect to certain
equity interests in a qualified opportunity fund (QOF).
DATES: These corrections are effective on August 5, 2021 and applicable
on or after January 13, 2020.
FOR FURTHER INFORMATION CONTACT: Concerning section 1400Z-2 and these
regulations generally, Harith J. Razaa, (202) 317-7006, or Kyle C.
Griffin, (202) 317-4718, of the Office of Associate Chief Counsel
(Income Tax and Accounting). These numbers are not toll-free numbers.
SUPPLEMENTARY INFORMATION:
Background
The final regulations (TD 9889) that are the subject of this
correction are under section 1400Z-2 of the Code.
Need for Correction
As published on January 13, 2020 (85 FR 19082) the final
regulations (TD 9889) contain errors that need to be corrected.
List of Subjects in 26 CFR Part 1
Income Taxes, Reporting and recordkeeping requirements.
Correction of Publication
Accordingly, 26 CFR part 1 is corrected by making the following
correcting amendments:
PART 1--INCOME TAXES
0
Paragraph 1. The authority citation for part 1 continues to read in
part as follows:
Authority: 26 U.S.C. 7805 * * *
0
Par. 2. Section 1.1400Z2(d)-1 is amended by revising paragraphs (a)(3)
and (d)(3)(vi)(D) to read as follows:
Sec. 1.1400Z2(d)-1 Qualified opportunity funds and qualified
opportunity zone businesses.
* * * * *
(a) * * *
(3) Self decertification of a QOF. If a QOF chooses to decertify as
a QOF, the self-decertification must be effected in such form and
manner as may be prescribed by the Commissioner in IRS forms or
instructions or in publications or guidance published in the Internal
Revenue Bulletin (see Sec. Sec. 601.601(d)(2) and 601.602 of this
chapter.)
* * * * *
(d) * * *
(3) * * *
(vi) * * *
(D) Safe harbor for working capital and property on which working
capital is being expended--(1) Working capital for start-up businesses.
For start-up businesses utilizing the working capital safe harbor, if
paragraph (d)(3)(v) of this section treats property of an entity that
would otherwise be nonqualified financial property as being a
reasonable amount of working capital because of compliance with the
three requirements of paragraphs (d)(3)(v)(A) through (C) of this
section, the entity satisfies the requirements of section 1400Z-
2(d)(3)(A)(i) only during the working capital safe harbor period(s) for
which the requirements of paragraphs (d)(3)(v)(A) through (C) of this
section are satisfied; however such property is not qualified
opportunity zone business property for any purpose.
(2) Tangible property acquired with covered working capital. For
any eligible entity, if tangible property referred to in paragraph
(d)(3)(v)(A) is expected to satisfy the requirements of section 1400Z-
2(d)(2)(D)(i) as a result of the planned expenditure of working capital
described in paragraph (d)(3)(v)(A), and is purchased, leased, or
improved by the trade or business, pursuant to the written plan for the
expenditure of the working capital, then the tangible property is
treated as qualified opportunity zone business property satisfying the
requirements of section 1400Z-2(d)(2)(D)(i), during that and subsequent
working capital periods the property is subject to, for purposes of the
70-percent tangible property standard in section 1400Z-2(d)(3).
* * * * *
Oluwafunmilayo P. Taylor,
Federal Register Liaison, Publications and Regulations Branch, Legal
Processing Division, Associate Chief Counsel (Procedure and
Administration).
[FR Doc. 2021-16663 Filed 8-4-21; 8:45 am]
BILLING CODE 4830-01-P
</pre></body>
</html>Indexed from Federal Register on August 5, 2021.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.