Key Dates & Deadlines for Opportunity Zone Investing
As 2019 winds down and the full benefit of the Opportunity Zones tax incentive expires, here are some key dates for investing in Opportunity Zones—past and future.
Note: as IRS regulations are not yet finalized, these dates are subject to change.
February 2, 2017: The Investing in Opportunity Act is introduced in the Senate and House.
December 22, 2017: The Tax Cuts and Jobs Act of 2017—which includes a modified version of the Investing in Opportunity Act—is signed into law, enacting the Opportunity Zones tax incentive.
January 1, 2018: The first date in which property may be acquired by purchase to qualify as eligible Qualified Opportunity Zone property.
June 14, 2018: Treasury finalizes certification of Opportunity Zones in all 50 states, 5 overseas territories, and the District of Columbia. There are 8,762 Opportunity Zones throughout the nation.
October 19, 2018: The first set of proposed regulations is issued by the IRS.
December 14, 2018: Treasury certifies two additional Puerto Rican Opportunity Zones, bringing the total number of OZs to 8,764.
February 14, 2019: The first IRS public hearing on Qualified Opportunity Funds.
April 17, 2019: The second set of proposed regulations is issued by the IRS.
June 28, 2019: The final date to invest capital gains recognized in 2018.
July 9, 2019: The second IRS public hearing on Qualified Opportunity Funds.
December 31, 2019: The final date to receive the full tax benefit of Opportunity Zone investing. After this date, the 15% step-up in basis after a 7-year hold goes away, as it is no longer possible to achieve a 7-year hold prior to the end of 2026.
June 27, 2020: The final date to invest capital gains recognized in 2019.
June 28, 2021: The final date to invest capital gains recognized in 2020.
December 31, 2021: The final date to receive any basis step-up on the original gain. After this date, the 10% step-up in basis after a 5-year hold goes away, as it is no longer possible to achieve a 5-year hold prior to the end of 2026.
June 28, 2022: The final date to invest capital gains recognized in 2021.
June 28, 2023: The final date to invest capital gains recognized in 2022.
June 27, 2024: The final date to invest capital gains recognized in 2023.
June 28, 2025: The final date to invest capital gains recognized in 2024.
June 28, 2026: The final date to invest capital gains recognized in 2025.
December 31, 2026: Original deferred gain is recognized.
April 15, 2027: Tax payments due on original deferred gain.
June 28, 2027: The final date to invest capital gains recognized in 2026, making this the final deadline to invest in a Qualified Opportunity Fund in order to achieve the 10-year gain exclusion.
2028: The first year in which some of the earliest Opportunity Zone investments may be sold and qualify for the 10-year gain exclusion.
December 31, 2028: Statutory expiration of the designation of Qualified Opportunity Zones. (It is unclear what, if any, material effect this will have on the incentive.)
June 28, 2037: The earliest date on which the last Opportunity Zone investments may be sold and qualify for the 10-year gain exclusion.
December 31, 2047: The final date to dispose of an Opportunity Zone investment (or possibly the final date to elect a basis step-up, rules still pending) in order to achieve a basis step-up to fair market value, thereby eliminating capital gains.