DEFER TAXES WITHOUT BUYING ANOTHER RENTAL PROPERTY QUALIFIED OPPORTUNITY ZONE (QOZ) FUNDS A Qualified Opportunity Zone (QOZ) Fund is an investment vehicle created under the Tax Cuts and Jobs Act of 2017 to encourage long-term investments in economically distressed communities. These funds provide investors with substantial tax incentives while promoting economic development in designated Opportunity Zones, which are typically low-income areas selected by state governments and certified by the U.S. Treasury Department.
How QOZ Fund Tax Benefits Work
Investors can defer capital gains taxes by reinvesting the gains from the sale of stocks, businesses, or real estate into a Qualified Opportunity Zone Fund (QOF) within 180 days. Unlike 1031 exchanges, QOZ funds only require that a taxpayer reinvest their gains, not the entire sales proceeds. Investors’ original capital gains taxes are deferred until their 2026 tax payment (typically Spring 2027). If the investment is held for 10 years or more, investors also pay zero capital gains tax on the gains derived from their QOZ investments.
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