On Aug. 4, the Treasury Department, and Internal Revenue Service (IRS) surgically nipped and tucked the regulations governing qualified opportunity zone funds (QOFs) which, while precise and limited to two specific sections, arguably results in a complete face lift to the way QOFs must operate. In general, a QOF is a corporation or a partnership that self-certifies to the IRS that it meets a litany of requirements set forth in the Internal Revenue Code (the code) and Treasury regulations promulgated thereunder. If the entity satisfies such requirements, it provides a taxpayer who timely invests in a QOF with two primary federal income tax benefits: such taxpayer can defer recognizing federal income tax on capital gains recognized by such taxpayer on an unrelated transaction until Dec. 31, 2025; and such taxpayer can avoid paying any federal income tax upon exiting the QOF if such taxpayer has held the investment for at least ten years. As it relates to South Florida, where many QOFs are real-estate focused, these surgical cuts may jeopardize their qualifications as QOFs and the ability of taxpayers who invest in these QOFs to avail themselves of the foregoing tax benefits.