Opportunity Zones

Unlocking the opportunity


Qualified Opportunity Zones (QOZs) enable taxpayers to defer and reduce capital gains to unlock substantial tax incentives. It promotes long-term investments while enabling investors to achieve financial returns and make a positive community and social impact. 

Recent QOZ insights from KPMG

 

Read  Inducement or Deterent – Proposed Regulations Addressed by QOZ Investments by Foreign Persons, April 21, 2021


Watch  Opportunity Zones 2021: An Evolving Investment Vehicle, April 21, 2021


Read  Reporting the Impact of Qualified Opportunity Zones, March 17, 2021


Read  Covid Relief Extended for Qualified Opportunity Funds and Investors, Janaury 20, 2021


More KPMG insights

Read  | Withholding and QOZs: Treasury Withholds Relief, and Non-U.S. Investors Withhold Capital, December 16, 2020


Watch  | QOZ Quick Hit: Year-end Tax Compliance, Webcast, December 2, 2020


Watch  | QOZ Quick Hit: U.S. Election Impact, Webcast, October 26, 2020


Watch  | QOZ Quick Hit: State and Local Update, September 29, 2020


Learn  | The 21st Century New Deal — Version 3.0, QOZs Final Regulations and Corrective Amendments, June 30, 2020


Read  | Qualified Opportunity Zone Rules as of June 2020 — Checking In and Checking Up, June 22, 2020


Read  | Section 1400Z-2 Finals Regulations; Observations on Correcting Amendments, April 20, 2021


Read  | Timing Considerations for QOF & QOF Investors in Light of COVID-19, March 24, 2020


Read  | Tax Incentivized Projects in QOZs—Incentives that May Work Together, March 23, 2020


Read  | The Road Has Been Paved, Summary and Observations on Final QOZ Regs, January 23, 2020


Read  | Initial Impressions of Final Regulations for Opportunity Zones, December 20, 2019


Read  | Opportunity Zones—Unlock New Opportunities, September 2019


Read  | Opportunity Zones and REITS—The Latest Guidance from Treasury and the IRS, June 24, 2019


Listen | Realty Speak—Latest on QOZ Guidance, Podcast, June 10, 2019


Read  | Opportunity Zones: Highlights of the Second Set of Proposed Regulations, April 18, 2019


Read  | A New Path Forward, Summary and Observations on Proposed QOZ Regs, May 2019


Read  | Opportunity Zones and Privately Held Companies, December 2018


Read  | New Rules for Opportunity Zones, Oactober 22, 2018

Legislative history

Follow the links for a chronological history of the proposed and final regulations, notices and announcements, and forms and instructions as well as KPMG analyses and articles pertaining to the these documents.

If you have QOZ questions or comments, use the Connect with a QOZ Specialist button to contact us.

2021

August 9, 2021 | KPMG Report | Round Two:  IRS Issues a Second Set of Corrective Amendments to the Qualified Opportunity Fund Regulations

Read


 

August 5, 2021 | IRS | Investing in Qualified Opportunity Funds; Correction

Read


May 12, 2021 | IRS | Announcement 2021-10 | Qualified Opportunity Zone Boundaries

Read


January 20, 2021 | KPMG Report | COVID Relief Extended for Qualified Funds and Investors

Read


January 19, 2021 | IRS | Notice 2010-10 | Extension of Relief for Qualified Opportunity Funds and Investors Affected by Ongoing Coronavirus Disease 2019 Pandemic

Read


 

2020

June 4, 2020 | IRS | Notice 2020-39 | Relief for Qualified Opportunity Funds and Investors Affected by Ongoing Coronavirus Disease 2019 Pandemic

Read


April 20, 2020 | KPMG Report | Section 1400Z- 2 Final Regulations; Observations on Correcting Amendments

Read


April 6, 2020 | Treasury and IRS | Correcting Amendments | Investing in Qualified Opportunity Funds

Read


 

2019

January 23, 2020 | KPMG Report | The Road Has Been Paved: Analysis and Observations about Final Regulations and Future Opportunity Zone Investments

Read


December 20, 2019 | KPMG Report | Initial Impressions of Final Regulations for Opportunity Zones

Read


December 19, 2019 | Treasury and IRS | Final Regulations | Investing in Qualified Opportunity Funds

Read


May 2019 | KPMG Report | A New Path Forward (Observations on Second Set of Proposed Regulations)

Read


April 18, 2019 | KPMG Report | Opportunity Zones: Highlights of the Second Set of Proposed Regulations

Read


April 17, 2019 | Treasury and IRS | Second Set of Proposed Regulations | Investing in Qualified Opportunity Funds

Read


 

2018

October 22, 2018 | KPMG Report | New Rules for Opportunity Zones

Read


October 19, 2018 | Treasury and IRS | Proposed Regulations | Investing in Qualified Opportunty Funds

Read


 

Forms

Sample Form 8949 Sales and Other Dispositions of Capital Assets

Form 8996 Qualified Opportunity Fund

Form 8996 - Rev. January 2021

Instructions for Form 8996 - Rev. January 2021

Form 8996 - Rev. December 2020 (draft as of December 18, 2020)

Instructions for Form 8996 - Rev. January 2020  (draft as of January 13, 2020)

Form 8996 - Rev. December 2019 (draft as of October 30, 2019)

Form 8996 - December 2018

Instructions for Form 8996 - Rev. December 2018

Form 8997 Initial and Annual Statement of Qualified Opportunity Fund Investments

Form 8997 - 2020

Form 8997 - 2019 - Draft as of January 13, 2020

Form 8997 - 2019

KPMG QOZ services


Capturing potential QOZ benefits involves a cross-functional approach. Addressing the needs of our clients related to QOZ investment, a diverse team of KPMG specialists can:

  • Provide a review for qualification purposes of the gain to be deferred under the QOZ rules
  • Review formation documents for the Qualified Opportunity Fund (QOF) as a partnership or corporation
  • Review contribution and partnership agreements for federal and state tax implications
  • Assist the QOF in acquiring QOZ assets or investment in Qualified Opportunity Zone Businesses (QOZBs), including assets to be acquired by the QOZB, to satisfy the QOF and QOZB qualified asset tests
  • Provide tax return services with respect to the QOF and QOZB
  • Provide audit and advisory services, as needed
  • Monitor continuing compliance of QOF certifications under the QOZ requirements
  • Develop structuring alternatives for QOF and QOZB
  • Provide tax opinions related to structuring and qualification of QOF and QOZB.

 


CalOZ Assist launched

December 17, 2020 | KPMG LLP is pleased to announce that it has launched CalOZ Assist, a new partnership with CalOZ, to help organizations overcome the initial challenges in engaging with the new and fast-evolving Opportunity Zone (OZ) landscape. CalOZ is a nonprofit trade organization dedicated to maximizing the transformative potential of OZs in California. Through CalOZ Assist, CalOZ members with limited in-house expertise and resources will have improved access to critical information needed for success in the OZ ecosystem.

With CalOZ Assist, approved parties will have access to reduced-fee introductory consultations with the KPMG national OZ practice. The firm's network of OZ and tax professionals will be available for 30- and 60-minute sessions to demystify key components of the OZ incentive and suggest next steps on how to comply with OZ program requirements. For more information, contact Orla O'Connor or John Kinsella.

 

Contact us

Joseph Scalio

Joseph Scalio

Senior Lead Tax Partner, KPMG US

+1 267-256-2778
Orla O'Connor

Orla O'Connor

Principal, Tax, KPMG US

+1 415-963-7511
Holly Belanger

Holly Belanger

Partner, Passthroughs Group, KPMG US

+1 202-533-4096
Katherine Breaks

Katherine Breaks

Principal, Tax Incentivized Transactions, Leasing & Energy, KPMG US

+1 202-533-4578
Dan Feitelberg

Dan Feitelberg

National Advisory Leader, Higher Education, Research, and other Not-for-Profits, KPMG US

+1 415-963-8650
Ruth Tang

Ruth Tang

Partner, Audit, KPMG US

+1 212-909-5083
Jeffrey Flecther

Jeffrey Flecther

Managing Director, Passthrough Tax Services, KPMG US

+1 26- 256-3367
Andrew Lau

Andrew Lau

Senior Manager, Tax Incentivized Transactions, Leasing & Energy, KPMG US

+1 212-872-3641
Anu Varadharajan

Anu Varadharajan

Director, Alternative Investments, KPMG US

+1 212 954 1816
Watch our video to learn the basics about the potential tax benefits for businesses that invest in QOZs