What is a Qualified Opportunity Zone investment?

Investing capital gains (within 180 days of realization) into a Qualified Opportunity Fund. The invested gain is deferred until the earlier of sale or December 31, 2026.

What is the main tax benefit for 10-year holds?

For investments held at least 10 years, the appreciation in the QOF investment itself is completely excluded from capital gains tax. The original deferred gain is still recognized in 2026.

What can a QOF invest in?

QOFs must hold at least 90% of assets in Qualified Opportunity Zone Property: stock or partnership interests in qualified OZ businesses, or qualified OZ business property.

How does QOZ compare to 1031 exchange?

1031 defers both gains and depreciation recapture on real estate indefinitely with serial exchanges. QOZ defers any capital gain asset and provides potential 10-year exclusion, but original deferred gain is recognized in 2026.

Is any basis step-up still available?

The original 10% and 15% basis step-ups for 5 and 7-year holds have expired. The 10-year exclusion of QOF appreciation remains the primary benefit for new investments.

US Qualified Opportunity Zone (QOZ) Tax Benefit Calculator

Calculate tax benefits of investing capital gains in Qualified Opportunity Zones. Deferred gain until 2026 (or earlier sale). 10-year hold: appreciation in QOZ investment entirely tax-free.

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Frequently Asked Questions

What is a Qualified Opportunity Zone investment?

What is the main tax benefit for 10-year holds?

What can a QOF invest in?

How does QOZ compare to 1031 exchange?

Is any basis step-up still available?