Investors in qualified opportunity funds (QOFs) under the Qualified Opportunity Zone (QOZ) 1.0 program are approaching a critical deadline, as previously deferred capital gains will become taxable on December 31, 2026. The amount of capital gain an investor will recognize is the lesser of either the amount of capital gain deferred or the fair market value of the QOF interest over the tax basis in the QOF interest. The option to look at the fair market value of the QOF interest as of December 31 provides investors with an important tax planning opportunity, but timely planning is crucial.
Read Angel Rice and Dave Sobochan’s recently published article, “Capital Gains Deferral Under Original OZ Program is Ending,” in NAIOP’s Development magazine to prepare ahead of the deadline.
Read the full article.
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