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New IRS Notice Extends Several Opportunity Zone Deadlines

By David O’Brien, CFP, CAIA

On the evening of January 19, IRS issued Notice 2021-10, which automatically extends several deadlines that had previously been extended under Notice 2020-39 issued on June 4, 2020 and Notice 2020-23 issued on April 9, 2020.

For individual investors most importantly, the latest notification expands many investors' 180-day investing period to March 31, 2021. An extension to December 31, 2020 was given by Note 2020-39 last year.

The extension is also immediately extended to March 31, 2021, for every 180-day duration occurring on or after April 1, 2020 and before March 31, 2021.

Effectively, this suggests that there is no 180-day duration for any benefit accepted by a person on or after October 4, 2019 and before October 2, 2020, but only a single March 31, 2021 deadline. The deadline for these taxpayers to invest in an Eligible Opportunity Fund is also immediately extended to March 31, 2021.

Crucially, this period includes the sell-off of the stock exchange that took place in late February and early March last year.

The new March 31, 2021 date extends on any benefit accepted by the partnership on or after January 1, 2019, for taxpayers using benefits reported on a partnership Schedule K-1. Usually, a taxpayer utilizing the benefit recorded on a K-1 may elect to start the 180-day duration on the due date of the tax return of the passthrough entity (not including extensions). This due date was March 15, 2020 for 2019 relationship returns. September 11, 2020 is the completion of the 180-day span that began on March 15, 2020, a date that falls into the timeframe that is now available for extension under this revised notification to March 31, 2021.

Questions? We can help, email or call 781-235-4426​

[1] Kyle C., Griffin. “Extension of Relief for Qualified Opportunity Funds and Investors Affected by Ongoing Coronavirus Disease 2019 Pandemic” Office of Associate Chief Counsel

This is for informational purposes only, does not constitute as individual investment advice, and should not be relied upon as tax or legal advice. Please consult the appropriate professional regarding your individual circumstance.

There are material risks associated with investing in real estate securities including liquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short term leases associated with multi-family properties, financing risks, potential adverse tax consequences, general economic risks, development risks, long hold periods, and potential loss of the entire investment principal.

Securities offered through Concorde Investment Services, LLC, member FINRA/SIPC Insurance offered through Asset Strategy Financial Insurance Agency, Inc. (ASFG) Advisory services provided by Asset Strategy Advisors, LLC (ASA), a Registered Investment Advisor. CIS is independent of ASFG and ASA.

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