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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?


Answers
  • Valerie Grunduski
    September 23, 2019

    If the gain is a pure capital gain, the 180-day investment period begins on the date of the transaction. If the gain is a capital gain from a flow-through entity, the 180-day period can start on either the date of the transaction or the last day of the taxable year. If the gain is a 1231 gain, the second round of proposed regulations require that you first net all 1231 gains and may only begin your 180-day reinvestment period on the last day of the taxable year.

  • 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.