Coalition Letter to Congressional Leadership Regarding Deferred Gain Extension and Qualified Opportunity Zones

On December 21 NAR signed on to a letter to Speaker Pelosi, Minority Leader McCarthy, Majority Leader Schumer, and Minority Leader McConnell. The letter urges the extension of the deferred gain recognition date by two years, through the end of 2028 in order to encourage investment in Opportunity Zones. A two-year extension would encourage more Opportunity Zone investment by allowing investors to continue to qualify through 2023 for the 10 percent step-up in the basis of their prior investment if the gain is invested for at least 5 years. It would also provide added incentive by lengthening the deferral period for gain that is rolled into an Opportunity Fund. Combined, these changes would help address the shortfall in new investment and job creation resulting from the pandemic and ensure that Opportunity Zones continue to act as a catalyst for economic development in struggling communities.