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Foreign Investors in Opportunity Zones Get Clarity on Withholding

April 12, 2021, 8:52 PM

The IRS proposed revised rules for the 2017 tax law’s opportunity zone tax breaks to address non-U.S. investors’ eligibility.

The agency released the proposed rules (REG-121095-19), which include guidance on a pandemic-related deadline extension, on Monday.

  • The guidance builds on January 2020 rules (T.D. 9889) for the capital gains tax incentives that said non-U.S. investors’ capital gains “effectively connected” to a U.S. trade or business could be deferred like other eligible gains. At that time, officials left the door open for how tax withholding for foreign investors in U.S. real estate would work in the context ...

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