Tax Benefits of Investing in a Qualified Opportunity Fund (QOF)

Deferral: A temporary tax deferral for capital gains reinvested in a QOF fund until December 31, 2026, or the date on which the opportunity fund investment is sold, whichever is earlier.

Reduction: If the capital gains are reinvested in a QOF by December 31, 2021, the deferred taxes owed for 2026 are reduced by 10%.

To have received the full 15% step up basis, you would have had to made the investment in QOF by December 31, 2019

Elimination: An elimination of capital gains tax for capital gains generated by the investment if the investment is held for at least 10 years. (Note: this exclusion applies only to the gains accrued from the investment in a Qualified Opportunity Fund, not the original gains)

Ready to Invest? Explore Projects in Opportunity Zones

Disclaimer: The information contained herein is provided without warranty of any kind. The Kentucky Cabinet for Economic Development does not accept any responsibility or liability for the accuracy, content, completeness, legality, or reliability of the information contained on this website. Further, the available projects listed herein may or may not have the necessary characteristics for the Opportunity Zone program. The Kentucky Cabinet for Economic Development encourages each interested Investor to perform its own due diligence to ensure the project complies with the requirements of 26 CFR ยง 1.1400z2(d)- 1, et seq.