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Can I sell my QOF and what should I think about?

I am moving overseas and need to reorganize my finances. What would my tax impact be if I sell my QOF before Dec. 31?

  • Valerie Grunduski
    November 25, 2019

    This would trigger the gain that you originally deferred into your QOF investment.

  • Scott McIntosh
    November 18, 2019

    Yes, you can sell your interest in a QOF at any time (subject to the entity's operating agreement.) Sale of a QOF prior to Dec. 31, 2026 is one of the enumerated "inclusion events" and will trigger the recognition of your deferred gain on your current-year tax return. In addition to the recognition of the previously deferred gain, you would also be subject to tax on any increase in the value of your QOF investment.

  • Matthew Rappaport
    November 18, 2019

    If you sell your QOF without reinvesting into a different QOF, you pay capital gains taxes as normal.

  • Maria De Los Angeles Rivera
    November 17, 2019

    You will have to recognize 100% of the deferred gain in 2019 plus any appreciation.


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