On April 1, 2020, the US Internal Revenue Service updated and corrected the qualified opportunity fund regulations originally issued in December 2019. The update and corrections sharpen the rules for holding contributions in working capital, expand the working capital rules to loan proceeds, clarify the purchase requirement in a taxpayer-friendly way and tighten the prohibition on the acquisition of assets from related parties. Mark Leeds and Stephanie Wood, both tax lawyers in the New York office of Mayer Brown, explore the impact of the new IRS release on qualified opportunity funds in this Legal Update.
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