If I as a taxpayer get eligible gains in January, I heard I can’t invest in a QOF until Dec. 31 of such taxable year. Is there a way around that?
There is no such "blackout period" under the final regulations. This used to be the case with net Section 1231 gains, but the final regulations got rid of that rule. If you want to start the 180-day timer on the date of recognition of capital gain, you are free to do that.
What you heard is no longer true based on Final Regulations, you can absolutely invest within the first 180 days after the date of sale, and in some cases, that is the latest you can invest depending if it's 1231 gain or gains from an asset held in a pass-through entity.
That is not true.
Assuming you are referencing gains that come to you on a pass-through K-1, you actually have multiple options. Your 180-day period can begin with the date of the transaction in January. Otherwise, you can use the year-end or the original due date of the pass-through's tax return to start your 180-day period. If you are referencing a gain from a direct sale, the 180-days should begin with the date of the transaction.
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