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What are the criteria for safe harbor to apply to capital used for the development of an operating business?

What are the criteria for safe harbor to apply to capital used for the development of an operating business?


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  • Matthew Rappaport
    July 28, 2020

    You need a business plan and capital deployment schedule, and you need to substantially follow the schedule unless it is affected by circumstances outside of your control. You get a 31-month allowance for each block of cash, but the 31-month period can stretch to up to double that duration under certain conditions. The COVID-19 pandemic resulted in an IRS Notice extending the period even further.

  • Brad Cohen
    July 27, 2020

    Except for s few exclusions, pretty much any business as long as it is active.

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