Each contribution starts the clock.
Ask A Question
What does the new regulation say about overlapping contributions and the 31-month working capital safe harbor?
What does the new regulation say about overlapping contributions and the 31-month working capital safe harbor?
Answers
The new regulations generally say that the 31-month working capital safe harbor can be extended up to 62 months depending on the timing of new cash contributions. The extension of the safe harbor timing depends on whether a business plan was in place and what kind of timeline that business plan features. The timing must be reasonable and in line with the active conduct of a trade or business within a QOZ.
There is the possibility of having multiple 31 months period. Be sure to verify the requirements.
DISCLAIMER:the information found on this website is intended to be general information; it is not legal or financial advice. Specific legal or financial advice can only be given by a licensed professional with full knowledge of all the facts and circumstances of your particular situation. You should seek consultation with legal and financial experts prior to participating in any aspect relating to Opportunity Zones. Posting a question on this website does not create an attorney-client relationship. All questions you post will be available to the public; do not include confidential information in your question.