The IRS has cancelled a key hearing on opportunity zones amid the ongoing government shutdown.
The hearing was originally scheduled for Jan. 10 and would focus on tax breaks and proposed regulations under the new program, according to Bloomberg. The agency plans to announce a new date for the hearing after funding is restored to the Treasury Department.
The IRS received almost 150 comments ahead of the hearing. It was seeking feedback on how to define “substantial improvements” and “original use,” which will impact how developments remain eligible for tax cuts.
Though the program has generated great interest in the real estate world, the lack of detailed guidelines may discourage some investors.
The Opportunity Zones program, enacted in late 2017 as part of the Trump administration’s tax overhaul, provides tax deferments and tax breaks for investors who put capital in projects or companies in designated low-income neighborhoods across the country.
Ivanka Trump, the president’s daughter and a White House adviser, has attracted scrutiny for advocating for the program while standing to benefit greatly from it. [Bloomberg] – Kevin Sun