What is a Qualified Opportunity Fund?
If this applies to you, you'll usually see "QOF" or "Qualified Opportunity Fund" mentioned on your 1099-B or consolidated 1099 (1099-DA for crypto sales).
A Qualified Opportunity Fund is a way to defer tax on certain gains. It is an investment vehicle, usually a corporation or partnership, for that invests in property located in a qualified opportunity zone.
Opportunity zones are designed to spur economic development and job creation in distressed communities by providing tax benefits to investors in Qualified Opportunity Funds.
Investment in a Qualified Opportunity Fund must occur within the 180-day period beginning on the date the deferred gain was realized. The character of the eligible gain will survive the investment in the Qualified Opportunity Fund.
When you recognize the eligible gain (either when you sell/exchange your investment in the QOF or December 31, 2026, whichever is earlier), the gain you recognize will be the same character as the gain you deferred.
You may also be able to permanently exclude the gain from the sale/exchange of any investment in a Qualified Opportunity Fund if the investment is held for at least 10 years.
How do I enter the sale of a Qualified Opportunity Fund?
A Qualified Opportunity Fund is a way to defer tax on certain gains. It is an investment vehicle, usually a corporation or partnership, for that invests in property located in a qualified opportunity zone.
Opportunity zones are designed to spur economic development and job creation in distressed communities by providing tax benefits to investors in Qualified Opportunity Funds.
Investment in a Qualified Opportunity Fund must occur within the 180-day period beginning on the date the deferred gain was realized. The character of the eligible gain will survive the investment in the Qualified Opportunity Fund.
When you recognize the eligible gain (either when you sell/exchange your investment in the QOF or December 31, 2026, whichever is earlier), the gain you recognize will be the same character as the gain you deferred.
You may also be able to permanently exclude the gain from the sale/exchange of any investment in a Qualified Opportunity Fund if the investment is held for at least 10 years.
How do I enter the sale of a Qualified Opportunity Fund?
