Qualified Opportunity Zone (IRC §1400Z-2)
Discover the powerful tax incentives designed to spur economic development and job creation in distressed communities.
What is a QOZ?
A Qualified Opportunity Zone (QOZ) is an economically distressed community where new investments, under certain conditions, are eligible for preferential tax treatment.
Investors can defer, reduce, and potentially eliminate capital gains taxes by reinvesting gains from a prior investment into a Qualified Opportunity Fund (QOF). A QOF is a specialized fund that invests at least 90% of its assets in QOZ property.
Key Tax Benefits
Tax Deferral
Defer tax on prior gains invested in a QOF until the earlier of the date the QOF investment is sold or December 31, 2026.
Tax Elimination
After holding the QOF investment for at least 10 years, investors may be eligible to pay no capital gains tax on the appreciation of the QOF investment itself.
Critical Disclosures
QOZ investments are complex and involve long-term commitments. They are subject to market risks, regulatory changes, and specific compliance requirements. These investments are illiquid and suitable only for accredited investors who can bear the risk of loss.