IRS Notice 2021-10, which automatically extends several IRS deadlines, has just been updated again!!
How does that benefit you, the taxpayer? Any gain (sale of stock, sale of property etc.) that you created by selling after October 4, 2019 but before October 2, 2020 can still have the taxation delayed by using a “QOZ” or Qualified Opportunity Zone investment.
The new IRS notice extends the 180-day investment period for many investors to March 31, 2021. Now, for any 180-day period that ends on or after April 1, 2020 and before March 31, 2021, the deadline is automatically extended to March 31, 2021. Effectively, this means that for any gain recognized by an individual on or after October 4, 2019 and before October 2, 2020, there is no 180-day period but rather a single deadline of March 31, 2021.
Even more notable is that if you have already filed a return and recognized a gain, but have now decided you would rather have used a QOZ to delay that gain, you can purchase a QOZ and amend the return and receive a refund!!
Lately, the tax rules have been much more fluid than usual. This one’s a good one for many!