Invest in a Qualified Opportunity Fund by End of Year for Maximum Tax Benefits

Posted on Dec 18, 2019

In order to enjoy the maximum potential tax benefits of a Qualified Opportunity Fund (QOF), you must invest in a QOF by December 31, 2019. This will allow you to hold the investment for seven years prior to December 31, 2026 and thus receive the maximum 15% reduction in capital gains. Investors may still invest in QOFs after December 31st, but the potential exclusion from tax for invested gains would be limited to 10%, assuming a five year hold prior to December 31, 2026.

More importantly, December 31st is the only day that a taxpayer can invest in a QOF to receive the maximum tax benefits from deferring Section 1231 gains.

The Opportunity Zone rules are new, complex, and untested. Additional guidance is expected from the IRS in the coming weeks. While there are many articles and resources online, we highly recommend that you work with your CPA and Tax Attorney when considering investment in a QOF. Timing will be key to ensure that you receive the tax benefits allowed under these new rules.

If you have further questions about investing in Qualified Opportunity Zones, contact a Clark Nuber real estate professional.

© Clark Nuber PS and Developing News, 2019. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Clark Nuber PS and Developing News with appropriate and specific direction to the original content.

FacebooktwitterlinkedinmailFacebooktwitterlinkedinmail

This article or blog contains general information only and should not be construed as accounting, business, financial, investment, legal, tax, or other professional advice or services. Before making any decision or taking any action, you should engage a qualified professional advisor.

Posted by:

Media Contact

Melissa Takade
Director of Marketing
Clark Nuber
Phone: 425-454-4919
Contact Melissa

Blog Archives

  • 2020
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2014
  • 2013