This past April, the U.S. Treasury released a second set of proposed regulations relating to the qualified opportunity zone program. These proposed regulations address a wide range of issues affecting owners of real property located in “qualified opportunity zones” who want to develop their property using capital furnished by qualified opportunity zone program investors.
From the perspective of those owners, the most important issues addressed by this second set of proposed regulations relate to the circumstances under which (1) unimproved land or a vacant structure acquired by purchase or real property acquired under lease that is used in trade or business in a qualified opportunity zone will be treated as “qualified opportunity zone business property;” and (2) the ownership and operation of real property is deemed conducting an active trade or business.
