Covid-19 Opportunity Zone Working Capital Relief Not Automatic

May 14, 2021, 9:22 PM

Recent Covid-19 relief providing extra time for working capital to be spent on projects in opportunity zones isn’t automatic, an IRS official said Friday.

A qualified opportunity zone business is allowed to hold working capital if it has a written plan to spend the funds within 31 months. Covid-19 guidance released in January gave businesses holding such assets before June 30, 2021, up to an additional 24 months to use them.

  • “We’re not treating the 24-month extension as automatic; so during an exam, I think taxpayers should be prepared to articulate why they needed the additional up to 24 ...

To read the full article log in. To learn more about a subscription click here.