If you invest your capital gains prior to Dec. 31, 2019, and hold it for seven years, you will get a 15 percent step-up on the original gain basis. If you invest prior to Dec. 31, 2021, and hold for five years you will get a 10 percent step-up on the original gain basis. You do not need to hold the investment for 10 years to receive these benefits. That said, holding for 10 years will also result in a 100% step-up in the QOF investment itself, meaning you would not have any capital gains tax due on the capital invested in the QOF (e.g., your gains on your original capital gains would be tax-free). Depending on the structure of the QOF and the underlying investment, it is possible to recapitalize the investment during the 10-year hold, resulting in being able to take money out prior to the five-, seven- and 10-year hold periods while maintaining the ability to receive the benefits. This is a complex topic that should be discussed with a tax accountant/attorney, however.