Code of Federal Regulations · Section
§ 1.1400Z2-0 — z2-0 Table Of Contents
26 C.F.R. § 1.1400Z2-0
This section lists the table of contents for §§ 1.1400Z2(a)-1 through 1.1400Z2(f)-1.
(a) Deferring tax on capital gains.
(1) Overview.
(2) Procedure for deferring gain.
(b) Definitions.
(1) 30-month substantial improvement period.
(2) 70-percent tangible property standard.
(3) 70-percent use test.
(4) 90-percent investment standard.
(5) 90-percent qualified opportunity zone property holding period.
(6) 90-percent qualified opportunity zone business property holding period.
(7) 180-day period.
(8) Boot.
(9) Consolidated group.
(10) Deferral election.
(11) Eligible gain.
(12) Eligible interest.
(13) Eligible taxpayer.
(14) Inclusion event.
(15) Mixed-funds investment.
(16) Non-qualifying investment.
(17) Property.
(18) QOF.
(19) QOF C corporation.
(20) QOF corporation.
(21) QOF RIC.
(22) QOF REIT.
(23) QOF owner.
(24) QOF partner.
(25) QOF partnership.
(26) QOF S corporation.
(27) QOF shareholder.
(28) QOZ designation notice.
(29) Qualified opportunity zone business.
(30) Qualified opportunity zone business property.
(31) Qualified opportunity zone partnership interest.
(32) Qualified opportunity zone property.
(33) Qualified opportunity zone stock.
(34) Qualifying investment.
(35) Qualifying QOF partnership interest.
(36) Qualifying QOF stock.
(37) Qualifying section 355 transaction.
(38) Qualifying section 381 transaction.
(39) Related persons.
(40) Remaining deferred gain.
(41) Section 1400Z-2 regulations.
(c) Operational and special rules.
(1) Attributes of gains included in income under section 1400Z-2(a)(1)(B).
(2) Identification of which interest in a QOF corporation has been disposed of.
(3) Pro-rata method.
(4) Examples.
(5) Making an investment for purposes of an election under section 1400Z-2(a).
(6) Amount invested for purposes of section 1400Z-2(a)(1)(A).
(7) Eligible gains that a partnership elects to defer.
(8) Eligible gains that the partnership does not defer.
(9) Passthrough entities other than partnerships.
(d) Elections.
(1) Taxable year of deferral election.
(2) Annual reporting of qualifying investments.
(e) Interaction of section 1400Z-2 and § 1.897-6T.
(f) Treatment of mixed-funds investments.
(1) Investments to which no election under section 1400Z-2(a) applies.
(2) Treatment of deemed contributions of money under section 752(a).
(3) Treatment of contributions to QOF corporation in which no stock is received.
(4) Example.
(g) Applicability dates.
(1) In general.
(2) Prior periods.
(a) Scope.
(b) General inclusion rule.
(c) Inclusion events.
(1) In general.
(2) Termination or liquidation of QOF or QOF owner.
(3) Transfer of an investment in a QOF by gift or incident to divorce.
(4) Transfer of an investment in a QOF by reason of the taxpayer's death.
(5) Grantor trusts.
(6) Special rules for partners and partnerships.
(7) Special rules for S corporations.
(8) Distributions by a QOF corporation.
(9) Dividend-equivalent redemptions and redemptions of section 306 stock.
(10) Qualifying section 381 transactions.
(11) Section 355 transactions.
(12) Recapitalizations and section 1036 transactions.
(13) Section 304 transactions.
(14) Deduction for worthlessness.
(15) Decertification of a QOF.
(16) Other inclusion and non-inclusion events.
(d) Holding periods.
(1) Holding period for qualifying investment.
(2) Status of QOF assets as qualified opportunity zone property.
(e) Amount includible.
(1) In general.
(2) Property received from a QOF in certain transactions.
(3) Gain recognized on December 31, 2026.
(4) Special amount includible rule for partnerships and S corporations.
(5) Limitation on amount of gain included after statutory five-year and seven-year basis increases.
(f) Examples.
(g) Basis adjustments.
(1) Basis adjustments under section 1400Z-2(b)(2)(B)(ii) resulting from the inclusion of deferred gain.
(2) Amount of basis adjustment under section 1400Z-2(b)(2)(B)(iii) and (iv).
(3) Examples.
(4) Special partnership rules.
(5) Basis adjustments in S corporation stock.
(6) Basis in the hands of a taxpayer who received a qualifying investment in a QOF by reason of the prior owner's death.
(h) Notifications by partners and partnerships, and shareholders and.
(1) Notification of deferral election.
(2) Notification of deferred gain recognition by indirect QOF owner.
(3) Notification of section 1400Z-2(c) election by QOF partner or QOF partnership.
(4) S corporations.
(i) Reserved.
(j) Applicability dates.
(1) In general.
(2) Prior periods.
(a) Scope.
(b) Investment for which an election can be made.
(1) In general.
(2) Special election rules for QOF partnerships and QOF S corporations.
(3) Basis adjustments upon sale or exchange of qualifying QOF stock.
(c) Extension of availability of the election described in section 1400Z-2(c).
(d) Examples.
(e) Capital gain dividends paid by a QOF RIC or QOF REIT that some shareholders may be able to elect to receive tax free under section 1400Z-2(c).
(1) Eligibility.
(2) Definition of capital gain dividend identified with a date.
(3) General limitations on the amounts of capital gain with which a date may be identified.
(4) Determination of the amount of capital gain with which a date may be identified.
(f) Applicability dates.
(a) Overview.
(1) Eligible entity.
(2) Self-certification as a QOF.
(3) Self-decertification of a QOF.
(4) [Reserved]
(b) Valuation of property for purposes of the 90-percent investment standard and the 70-percent tangible property standard.
(1) In general.
(2) Special rules.
(3) Applicable financial statement valuation method.
(4) Alternative valuation method.
(c) Qualified opportunity zone property.
(1) In general.
(2) Qualified opportunity zone stock.
(3) Qualified opportunity zone partnership interest.
(d) Qualified opportunity zone business.
(1) In general.
(2) Satisfaction of 70-percent tangible property standard.
(3) Operation of section 1397C requirements adopted by reference.
(4) Trade or businesses described in section 144(c)(6)(B) not eligible.
(5) Tangible property of a qualified opportunity zone business that ceases to be qualified opportunity zone business property
(6) Cure period for qualified opportunity zone businesses.
(e) Applicability dates.
(1) In general.
(2) Prior periods.
(a) Qualified opportunity zone business property.
(1) In general.
(2) Qualified opportunity zone business property requirements.
(b) Tangible property owned by an eligible entity.
(1) Purchase requirement.
(2) Original use or substantial improvement requirement.
(3) Original use of tangible property acquired by purchase.
(4) Substantial improvement of tangible property acquired by purchase.
(c) Tangible property leased by an eligible entity.
(1) Qualifying acquisition of possession.
(2) Arms-length terms.
(3) Additional requirements for tangible property leased from a related person.
(4) Plan, intent, or expectation for purchases not for fair market value.
(d) Holding period and use within a qualified opportunity zone of owned or leased tangible property.
(1) In general.
(2) Valuation of owned and leased property.
(3) Substantially all of an eligible entity's holding period for owned or leased tangible property.
(4) Substantially all of the use of owned or leased tangible property in a qualified opportunity zone.
(e) Applicability dates.
(1) In general.
(2) Prior periods.
(a) In general.
(b) Time period for a QOF to reinvest certain proceeds.
(1) In general.
(2) Federally declared disasters.
(c) Anti-abuse rules.
(1) General anti-abuse rule.
(2) Special anti-abuse rule for partnerships.
(3) Examples.
(d) Applicability dates.
(1) In general.
(2) Prior periods.
Authorizing Statute
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Rules and regulations26 U.S.C. § 7805
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Advanced manufacturing production credit26 U.S.C. § 45X
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Alcohol, etc., used as fuel26 U.S.C. § 40
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Gross income defined26 U.S.C. § 61
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Transfers of excess pension assets to retiree health accounts26 U.S.C. § 420
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Partial exclusion for gain from certain small business stock26 U.S.C. § 1202
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Tax treatment of stripped bonds26 U.S.C. § 1286
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Current taxation of income from qualified electing funds26 U.S.C. § 1293
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Imposition of tax on certain foreign procurement26 U.S.C. § 5000C
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Returns regarding payments of interest26 U.S.C. § 6049
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Signing of returns and other documents26 U.S.C. § 6061
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General requirement of return, statement, or list26 U.S.C. § 6011
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Income from discharge of indebtedness26 U.S.C. § 108
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Indian general welfare benefits26 U.S.C. § 139E
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Bonds must be registered to be tax exempt; other requirements26 U.S.C. § 149
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Trade or business expenses26 U.S.C. § 162
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Accelerated cost recovery system26 U.S.C. § 168
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Amortizable bond premium26 U.S.C. § 171
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Golden parachute payments26 U.S.C. § 280G
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Distributions of stock and stock rights26 U.S.C. § 305
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Transfer to corporation controlled by transferor26 U.S.C. § 351
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Special rules for long-term contracts26 U.S.C. § 460
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Determination of basis of partner’s interest26 U.S.C. § 705
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Taxes of foreign countries and of possessions of United States26 U.S.C. § 901
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Controlled foreign corporations; United States persons26 U.S.C. § 957
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New energy efficient home credit26 U.S.C. § 45L
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2-percent floor on miscellaneous itemized deductions26 U.S.C. § 67
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Certain death benefits26 U.S.C. § 101
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Qualified business income26 U.S.C. § 199A
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Installment method26 U.S.C. § 453
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Certain payments for the use of property or services26 U.S.C. § 467
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Partners, not partnership, subject to tax26 U.S.C. § 701
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Extent of recognition of gain or loss on distribution26 U.S.C. § 731
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Capitalization of certain policy acquisition expenses26 U.S.C. § 848
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Special rules for determining source26 U.S.C. § 863
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Income of foreign governments and of international organizations26 U.S.C. § 892
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Definitions and special rules26 U.S.C. § 6241
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Computation and payment of tax26 U.S.C. § 1503
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Adjusted gross income defined26 U.S.C. § 62
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Treatment of loans with below-market interest rates26 U.S.C. § 7872
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Basis to distributees26 U.S.C. § 358
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Minimum participation standards26 U.S.C. § 410
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Other definitions and special rules26 U.S.C. § 860G
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Adjustments required by changes in method of accounting26 U.S.C. § 481
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Definitions26 U.S.C. § 7701
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Insurance income26 U.S.C. § 953
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Returns relating to actions affecting basis of specified securities26 U.S.C. § 6045B
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Information relating to certain trusts and annuity plans26 U.S.C. § 6047
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Enhanced oil recovery credit26 U.S.C. § 43
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Energy efficient commercial buildings deduction26 U.S.C. § 179D
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Redemption through use of related corporations26 U.S.C. § 304
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Certain stock purchases treated as asset acquisitions26 U.S.C. § 338
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Special limitations on certain excess credits, etc.26 U.S.C. § 383
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Optional treatment of elective deferrals as Roth contributions26 U.S.C. § 402A
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General rule for taxable year of inclusion26 U.S.C. § 451
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Qualified ABLE programs26 U.S.C. § 529A
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Charitable remainder trusts26 U.S.C. § 664
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Nonrecognition of gain or loss on contribution26 U.S.C. § 721
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Investment of earnings in United States property26 U.S.C. § 956
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Definitions and special rule26 U.S.C. § 1377
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Relief from joint and several liability on joint return26 U.S.C. § 6015
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Return of S corporation26 U.S.C. § 6037
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Notice of certain transfers to foreign persons26 U.S.C. § 6038B
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Information at source26 U.S.C. § 6041
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Imposition of accuracy-related penalty on underpayments26 U.S.C. § 6662
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Tax imposed26 U.S.C. § 1
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Railroad track maintenance credit26 U.S.C. § 45G
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Zero-emission nuclear power production credit26 U.S.C. § 45U
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Rehabilitation credit26 U.S.C. § 47
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Clean electricity investment credit26 U.S.C. § 48E
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Special rules26 U.S.C. § 52
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Election to expense certain depreciable business assets26 U.S.C. § 179
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Individual retirement accounts26 U.S.C. § 408
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Special rules for nondealers26 U.S.C. § 453A
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Deductions limited to amount at risk26 U.S.C. § 465
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Exemption from tax on corporations, certain trusts, etc.26 U.S.C. § 501
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Definition of regulated investment company26 U.S.C. § 851
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Source rules for personal property sales26 U.S.C. § 865
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Tax on nonresident alien individuals26 U.S.C. § 871
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Foreign base company income26 U.S.C. § 954
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S corporation defined26 U.S.C. § 1361
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Definitions26 U.S.C. § 1402
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Distributions of property26 U.S.C. § 301
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Life insurance contract defined26 U.S.C. § 7702
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Previously-owned clean vehicles26 U.S.C. § 25E
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Electricity produced from certain renewable resources, etc.26 U.S.C. § 45
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Clean fuel production credit26 U.S.C. § 45Z
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Taxation of employee annuities26 U.S.C. § 403
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Last-in, first-out inventories26 U.S.C. § 472
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Allocation of income and deductions among taxpayers26 U.S.C. § 482
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Definitions applicable to subparts A, B, C, and D26 U.S.C. § 643
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Taxable years of partner and partnership26 U.S.C. § 706
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Disposition of investment in United States real property26 U.S.C. § 897
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Administrative adjustment request by partnership26 U.S.C. § 6227
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Citizens or residents of the United States living abroad26 U.S.C. § 911
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Residence and source rules involving possessions26 U.S.C. § 937
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Rules relating to expatriated entities and their foreign parents26 U.S.C. § 7874
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Regulations26 U.S.C. § 1502
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Capitalization and inclusion in inventory costs of certain expenses26 U.S.C. § 263A
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Foreign corporations26 U.S.C. § 367
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Roth IRAs26 U.S.C. § 408A
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Minimum vesting standards26 U.S.C. § 411
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Partner’s distributive share26 U.S.C. § 704
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Unrealized receivables and inventory items26 U.S.C. § 751
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Taxation of residual interests26 U.S.C. § 860C
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Exclusions from gross income26 U.S.C. § 883
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Income affected by treaty26 U.S.C. § 894
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Other definitions and special rules26 U.S.C. § 989
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Special rules26 U.S.C. § 1474
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Returns of brokers26 U.S.C. § 6045
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Information returns of tax return preparers26 U.S.C. § 6060
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Authority to make credits or refunds26 U.S.C. § 6402
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Failure by individual to pay estimated income tax26 U.S.C. § 6654
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Interest on certain home mortgages26 U.S.C. § 25
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Credit for qualified commercial clean vehicles26 U.S.C. § 45W
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Interest on State and local bonds26 U.S.C. § 103
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Qualified lessee construction allowances for short-term leases26 U.S.C. § 110
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Losses26 U.S.C. § 165
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Charitable, etc., contributions and gifts26 U.S.C. § 170
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Incentive stock options26 U.S.C. § 422
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Deemed paid credit for subpart F inclusions26 U.S.C. § 960
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Election of mark to market for marketable stock26 U.S.C. § 1296
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Returns relating to certain life insurance contract transactions26 U.S.C. § 6050Y
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Clean vehicle credit26 U.S.C. § 30D
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Credit for carbon oxide sequestration26 U.S.C. § 45Q
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Amount of credit26 U.S.C. § 46
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Advanced manufacturing investment credit26 U.S.C. § 48D
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Arbitrage26 U.S.C. § 148
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Amortization of goodwill and certain other intangibles26 U.S.C. § 197
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Interest on education loans26 U.S.C. § 221
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Disallowance of certain entertainment, etc., expenses26 U.S.C. § 274
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Qualifications for tax credit employee stock ownership plans26 U.S.C. § 409
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Unrelated debt-financed income26 U.S.C. § 514
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Rules for allocation of basis26 U.S.C. § 755
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Rules for certain reserves26 U.S.C. § 807
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Special rules in case of foreign oil and gas income26 U.S.C. § 907
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Basis of property acquired from a decedent26 U.S.C. § 1014
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Special rules26 U.S.C. § 1298
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Definitions26 U.S.C. § 3401
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Extension of time for filing returns26 U.S.C. § 6081
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Renumbered § 45C]26 U.S.C. § 28
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Credit for production of clean hydrogen26 U.S.C. § 45V
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Energy credit26 U.S.C. § 48
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Limitation on credit26 U.S.C. § 904
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Qualified pension, profit-sharing, and stock bonus plans26 U.S.C. § 401
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Dependent care assistance programs26 U.S.C. § 129
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Special rules for nuclear decommissioning costs26 U.S.C. § 468A
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Mark to market accounting method for dealers in securities26 U.S.C. § 475
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Basis of distributed property other than money26 U.S.C. § 732
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Straddles26 U.S.C. § 1092
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Qualified electing fund26 U.S.C. § 1295
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Averaging of farm income26 U.S.C. § 1301
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Withholdable payments to foreign financial institutions26 U.S.C. § 1471
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Definitions26 U.S.C. § 1504
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Basis information to persons acquiring property from decedent26 U.S.C. § 6035
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Information with respect to certain foreign-owned corporations26 U.S.C. § 6038A
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Returns relating to cash received in trade or business, etc.26 U.S.C. § 6050I
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Credit for increasing research activities26 U.S.C. § 41
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Definitions and special rules26 U.S.C. § 150
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Passive activity losses and credits limited26 U.S.C. § 469
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Certain expenses for which credits are allowable26 U.S.C. § 280C
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Assumption of liability26 U.S.C. § 357
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Complete liquidations of subsidiaries26 U.S.C. § 332
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Distribution of stock and securities of a controlled corporation26 U.S.C. § 355
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Period for computation of taxable income26 U.S.C. § 441
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General rule for taxable year of deduction26 U.S.C. § 461
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Special rules for modified guaranteed contracts26 U.S.C. § 817A
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Treatment of variable contracts26 U.S.C. § 817
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Certain reinsurance agreements26 U.S.C. § 845
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Failure to file notice of redetermination of foreign tax26 U.S.C. § 6689
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Branch transactions26 U.S.C. § 987
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Qualified zone property defined26 U.S.C. § 1397D
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Withholdable payments to other foreign entities26 U.S.C. § 1472
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Liquidating, etc., transactions26 U.S.C. § 6043
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Verification of returns26 U.S.C. § 6065
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Mode or time of collection26 U.S.C. § 6302
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Transfer of certain credits26 U.S.C. § 6418
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American Opportunity and Lifetime Learning credits26 U.S.C. § 25A
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Refundable credit for coverage under a qualified health plan26 U.S.C. § 36B
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Clean electricity production credit26 U.S.C. § 45Y
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Other special rules26 U.S.C. § 50
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Treatment of community income26 U.S.C. § 66
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Basis to corporations26 U.S.C. § 362
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Election of taxable year other than required taxable year26 U.S.C. § 444
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Transactions between partner and partnership26 U.S.C. § 707
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Special allocation rules for certain asset acquisitions26 U.S.C. § 1060
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Discounted unpaid losses defined26 U.S.C. § 846
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Definitions and special rules26 U.S.C. § 864
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Capital asset defined26 U.S.C. § 1221
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Interest on tax deferral26 U.S.C. § 1291
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Passive foreign investment company26 U.S.C. § 1297
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Withholding of tax on nonresident aliens26 U.S.C. § 1441
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Returns as to interests in foreign partnerships26 U.S.C. § 6046A
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State and local income tax refunds26 U.S.C. § 6050E
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Returns relating to exchanges of certain partnership interests26 U.S.C. § 6050K
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Returns relating to higher education tuition and related expenses26 U.S.C. § 6050S
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Reporting of health insurance coverage26 U.S.C. § 6055
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Low-income housing credit26 U.S.C. § 42
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New markets tax credit26 U.S.C. § 45D
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Definitions and special rules26 U.S.C. § 414
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Qualified asset account; limitation on additions to account26 U.S.C. § 419A
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General rule for methods of accounting26 U.S.C. § 446
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Interest on certain deferred payments26 U.S.C. § 483
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Reserves for losses on loans of banks26 U.S.C. § 585
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Certain revocable trusts treated as part of estate26 U.S.C. § 645
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Insurance company taxable income26 U.S.C. § 832
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Income from sources within the United States26 U.S.C. § 861
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Treatment of certain foreign currency transactions26 U.S.C. § 988
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Functional currency26 U.S.C. § 985
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Other definitions and special rules26 U.S.C. § 1275
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Election to extend time for payment of tax on undistributed earnings26 U.S.C. § 1294
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Requirement to maintain minimum essential coverage26 U.S.C. § 5000A
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Returns by exempt organizations26 U.S.C. § 6033
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Information with respect to foreign financial assets26 U.S.C. § 6038D
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Returns relating to the cancellation of indebtedness by certain entities26 U.S.C. § 6050P
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Identifying numbers26 U.S.C. § 6109
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Elective payment of applicable credits26 U.S.C. § 6417
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Certain fringe benefits26 U.S.C. § 132
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Dependent defined26 U.S.C. § 152
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Interest26 U.S.C. § 163
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Bad debts26 U.S.C. § 166
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Special rules for credits and deductions26 U.S.C. § 642
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General rule for inventories26 U.S.C. § 471
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Political organizations26 U.S.C. § 527
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Special rules applicable to sections 661 and 66226 U.S.C. § 663
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Allowance of deductions and credits26 U.S.C. § 874
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Branch profits tax26 U.S.C. § 884
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Tax imposed on certain built-in gains26 U.S.C. § 1374
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Foreign tax-exempt organizations26 U.S.C. § 1443
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Valuation tables26 U.S.C. § 7520
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Losses on small business stock26 U.S.C. § 1244
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Distributions26 U.S.C. § 1368
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Definitions26 U.S.C. § 1473
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Information with respect to certain fines, penalties, and other amounts26 U.S.C. § 6050X
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Failure by corporation to pay estimated income tax26 U.S.C. § 6655