Recent guidance from Treasury clarifies fundamental aspects regarding the investment of deferred capital gains in QOFs.

Key Points:

..Investors in qualified opportunity funds may derive significant tax benefits in the form of gain deferral and tax-free appreciation under rules enacted as part of tax reform legislation passed at the end of 2017.

..Recent proposed regulations have provided clarifications that may help spur the formation of qualified opportunity funds, but fund sponsors and investors will continue to face uncertain tax outcomes pending further guidance.