Reply To: Qualified Opportunity Funds

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I have found several funds that have started to take in money for investment in Opportunity Zones.

For the investor to enjoy the tax advantages provided by the 2017 Tax Cuts and Jobs Act for Opportunity Zone investments, the fund must self-certify as a “Qualified Opportunity Fund”. However, the means for the fund to do this—Form 8996—is not yet available in final form. Moreover, the form is not required to be filed until the due date of the fund’s tax return. (And final regulations will not be published until 2019.)

For the investor to defer the realized capital gain invested in the fund, the TIN (taxpayer ID number) of the Qualified Opportunity Fund must be entered on Form 8949. I have not been able to find any such TIN in the fund documents I have reviewed.

Under these circumstances how can somebody investing right now be assured of the tax advantages before investing in the fund? Once invested, it may not be possible to withdraw for something like 10 years.