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What is the waiting period on actual gain from this year?

If my actual gain takes place in 2019, do I have to wait until 2020 to invest the gain or can I invest into an OZ fund in 2019, right after I realize the gain?

  • Matthew Rappaport
    July 15, 2019

    Depends on the specific type of gain. Need more details to answer the question.

  • Paul Wassgren
    July 11, 2019

    If your prior gain is real property used in a trade or business (see Section 1231 of the tax code), then the 180-day window in which to invest into a QOF starts on the last day of the tax year (i.e., Dec. 31). If your prior gain is from the sale of stock, a business or anything other than real property used in a trade or business, then the 180-day period commences on the date of sale triggering the capital gain. If the gain is generated through a partnership interest, the investor may, under certain circumstances, elect to vary the 180-day window.

  • Maria De Los Angeles Rivera
    July 11, 2019

    You have to invest within 180 days of realizing the gain. This period includes the day you realized the gain. Special rules for flow-through entities and 1231 gains.

  • Mark Leeds
    July 11, 2019

    You must invest within 180 days of the recognition of the gain. There is no waiting period.

  • Brad Cohen
    July 11, 2019

    You can do it right afterwards. There is a question with 1231 gains, but I think that will get fixed in next round of guidance.

  • Jonathan McGuire
    July 10, 2019

    The general rule is that you must invest within 180 days from the date of sale. The rules, however, may vary depending the source of the gain. The date of sale is generally the date the asset(s) are sold. If though the gain is realized from the sale o