Opportunity zones are a recent addition to the investment landscape, offering tax incentives for long-term investments in designated low-income areas. As we enter 2020, investors are looking closely at key dates and milestones for opportunity zone projects this year. With major deadlines approaching in 2020, understanding the OZ investment timeline on Reddit forums and elsewhere can help investors plan effectively.
IRS regulations and guidance continued to roll out in 2020, clarifying rules
The IRS issued several rounds of proposed regulations in 2019, but questions remained on some finer points of the opportunity zone rules. Reddit threads and articles in 2020 discussed new guidance from the IRS, including final and new proposed regulations that provided more clarity for investors.
Community input through 2020 shaped opportunity zone policy
Reddit threads and other social channels allowed stakeholders to share feedback on OZ proposals in 2020. Policymakers adjusted rules based on this input to balance community needs versus easing burdens on investors.
Deadline arrived for funds to deploy capital and start projects
A key date in 2020 was the deadline for qualified opportunity funds to have invested at least 90 percent of their capital into opportunity zone property. Missing this deadline would result in penalties, so investors were tracking this date carefully.
Investors positioned projects for completion by end of 2026
To receive the full tax benefit, investors need to hold their opportunity zone investments for at least 10 years. This means projects started in 2020 should target completion by the end of 2026. Reddit discussions focused on positioning projects for timely exit or sale.
The opportunity zone investment landscape continued to take shape in 2020 with new IRS guidance, community input, and key deadlines driving investor decisions. Tracking OZ timelines on Reddit and other channels helped investors plan projects to maximize incentives.