I’m an investor who wants to reinvest my capital gains into a Qualified Opportunity Fund to deter capital gains tax for 10 years. I’ve heard that the deferred gains must be recognized by Dec. 31, 2026. but how will I be able to keep my investment locked in for 10 years unless it’s until 2028?
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Robert J. Ivanhoe answered:
My understanding is you pay the deferred capital gains tax on the property sold prior to the Opportunity Zone investment by the end of 2026, but you may continue to hold the new zone investment beyond that date and continue to accrue appreciation free of tax on the new investment.