Latest Proposed Regulations Provide Needed Guidance on the Working Capital Safe Harbor | Sullivan & Worcester
To embed, copy and paste the code into your website or blog: Nestled within the new proposed regulations issued by the IRS on April 12 (the "Proposed Regulations") that mainly address foreign investors is needed relief for current Opportunity Zone projects. Under the statute, a Qualified Opportunity Zone Business ("QOZB") must hold less than 5% of its assets as "nonqualified financial property," which includes various financial instruments but does not include (i) reasonable amounts of working capital held in cash, (ii) cash equivalents, or (iii) short-term debt. The current Opportunity Zone ...