What are the criteria for safe harbor to apply to capital used for the development of an operating business?
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.
Except for s few exclusions, pretty much any business as long as it is active.
The same criteria apply to all business. You must develop a written and detailed plan for the use of the funds and comply with it.
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