Qualified Opportunity Zone Deferral Planner · §1400Z-2

Capital gain amount

Gain realization date

QOF investment date

Expected hold period (years)

Capital gains rate at recognition

Projected QOF growth multiple

QOZ Picture · §1400Z-2

180-day deadline to invest

2026-09-11

Deferral recognition date

12/31/2026

Tax due on deferred gain (2026)

$100,000

5-year 10% bump

Expired

QOF value at exit (proj.)

$1,250,000

Tax on QOF growth (10-yr hold)

Under §1400Z-2, deferred gain is recognized 12/31/2026 (or earlier on QOF disposition). Hold QOF 10+ yrs = basis stepped to FMV on sale = zero tax on QOF appreciation per §1400Z-2.

Talk to a preparer about QOZ investing

The 10% basis step-up (5-year hold) applied only to gains invested by 12/31/2021, and the extra 5% (7-year hold, 15% total) only to gains invested by 12/31/2019. Neither applies to 2024 or 2025 investments. For pre-2027 investments only deferral to 12/31/2026 and the 10-year exclusion remain. Investments made on or after 1/1/2027 follow the rolling five-year rules in P.L. 119-21 (§70421): deferral ends no later than five years after the investment, with a 10% basis increase at five years (30% for qualified rural opportunity funds). Educational tool, not legal advice. Call 689-331-5723 or email info@zerofusstaxes.com.