By Opportunity Zone Expo Staff
The benefit of rolling capital gains into a Qualified Opportunity Fund is getting a tax reduction or eliminating any capital gains tax. Investors have 180 days to reinvest their gains into a Qualified Opportunity Fund. The longer the investment is held — up to 10 years — the better the tax benefit.
If an investment is held in a Qualified Opportunity Fund for five years, the tax on capital gains will be reduced by 10 percent and if held for 7 years, it will be reduced by 15 percent. After 10 years, it would be eliminated.
The option provides an alternative to 1031 exchanges, which only apply to real estate.