Nope. Capital gains tax is deferred by investing in a QOF timely. There is no need to pay the tax first.
Ask A Question
Would I have to pay capital gains on a investment property before transferring the gains into an OZ Fund?
If I sell a property and want to transfer capital gains into OZ fund, do I have to pay the capital gain tax before putting gains in a OZ fund or is the gains tax deferred and would it be invested into other property/properties from the OZ fund?
Answers
In general, properly timed capital gains rolled into an OZ qualifying investment are deferred through tax year 2025. Generally, if properly timed, you do not pay the taxes until April 2026.
DISCLAIMER:the information found on this website is intended to be general information; it is not legal or financial advice. Specific legal or financial advice can only be given by a licensed professional with full knowledge of all the facts and circumstances of your particular situation. You should seek consultation with legal and financial experts prior to participating in any aspect relating to Opportunity Zones. Posting a question on this website does not create an attorney-client relationship. All questions you post will be available to the public; do not include confidential information in your question.