Can I transfer over my tax deferral status or will I lose that benefit?
You'd be able to re-defer if you get cash back to invest in a different QOF, but the ten-year timer restarts. But if you lose principal, that would need to be addressed in the QOF's documents; perhaps you'd have grounds for a securities lawsuit and perhaps you wouldn't (if you're invested in a syndicated fund as a limited partner equivalent). If it's your own project, you have to make sure the cash is available to re-invest in a different QOF.
If you have invested in a QOF, you generally have the right to redeem your interests and reinvest your original gains into another QOF within six months.
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