By: Amanda Wilson
If you acquired or built a senior living facility that is located in an opportunity zone, or are considering doing so, a recent bipartisan bill introduced in Congress proposes making changes to the opportunity zone rules. While some of these changes involve more extensive reporting by opportunity funds, there are also some extensions of the tax benefits. These include:
- Extending the deadline for triggering the deferred capital gain from December 31, 2026 to December 31, 2028;
- Lowering from 7 years to 6 years the holding period requirement for the forgiveness of 15% of the deferred capital gain; and
- Allowing opportunity funds to be feeder funds.
A discussion of the opportunity fund rules can be found here, and a more detailed discussion of the proposed legislation can be found here. We will keep you updated of the progress of this legislation.