I have a building that has been vacant for almost four years. At what point can it be treated as original use property?
For property that was vacant at the time that the OZ tracts were selected, a one-year vacancy period is all that is required. That said, if you owned this property prior to enactment, there are limitations on how you will or won't be able to use the benefits of the program. Please reach out to a tax advisor with the specifics of your planned deal.
The final regulations revised the vacancy rules so that only a year of vacancy is required, unless the property was not vacant on the day the OZ legislation passed, in which case three years of vacancy would be required. It sounds like your property is OK for original use in either scenario.
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