Qualified Opportunity Zone Program

Qualified Opportunity Zone Program

Investors' Timeline

Qualified Opportunity Zones (QOZ) provide tax incentives for private investment into more than 8,700 under-served communities that have been designated as Opportunity Zones throughout the country.  To qualify, investors must go through Opportunity Funds specifically set up for investing in a QOZ, and comply with the timing requirements set by the legislation, the IRS and Department of Treasury.

Program Deadlines:

Within 180 Days

Within 180 days of realizing the gains of a sale, the investor must reinvest those gains into an Opportunity Fund

Before December 31, 2026

Unit the earlier of either December 31st 2026 or the date the investor pulls their interest in the Opportunity Fund, the investor can defer payment of capital gains tax on the reinvested gains.

Interest Held in A Fund for 5-7 Years by December 31, 2026

If the investor holds their interest in the fund for at least 5 years, the tax paid (by December 31st 2026 or when they pull their interest in the fund) is reduced by 105 (through an adjustment in basis); if held for 7 years, it is reduced by 15%.

Interest Held in A Fund for 10+ Years

After being held for at least 10 years, upon sale, there is no tax on any appreciation on reinvested gains that occur while in the Opportunity Fund

December 31, 2028

Opportunity Zone designations expire

December 31, 2047

The last date to sell interest in an Opportunity Fund.

 

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