Senate Tax Bill Changes Opportunity Zone Capital Gains Timing

Senate tax writers changed the deferral period for writing off capital gains from the opportunity zones program in the latest version of the GOP megabill.

The tax bill released Saturday shifts language from a gradual seven-year step-up in basis on deferred capital gains to a 10% step-up after five. The program was created in the 2017 GOP law and set to fully expire in 2026. It gives breaks to investors funding long-term projects within federally designated economically distressed communities.

• The Senate’s bill also creates new transparency requirements and “qualified rural opportunity funds” for investment in funds targeting smaller communities and ...