COR2416. Opportunity Zone - Timing and Computation of Gain Recognition and Deferral

The session will focus on certain aspects of basis step up and gain recognition arising from the 10% and 5% exclusions on gain deferred from the original investment in a Qualified Opportunity Fund, the end of the deferral period on December 31,2026 and from certain inclusion events. Additionally we will discuss the elective basis step up elections for investments held at least 10 years. The program will include an analysis of the consequence of failed or delayed projects and the impact of voluntary decertification. Finally, we will discuss the prospect for legislation extending the OZ program as part of a reconciliation bill in the next Congress.

Learning Objectives:

• Determine rules for inclusion of deferred capital gains and gain computations in 2026.
• Distinguish gain computation and elections for investments held for at least 10 years.