When it comes to opportunity zone (OZ) investments, some investment deadlines have already passed, but there is still a basis step-up deadline that hasn’t passed, providing investors with some time to take advantage of this tax benefit.
In this article, we’ll go through the details of what to expect for OZ deadlines.
June 28, 2023 — Eligible capital gains recognized in 2022 must be invested by this date.
June 27, 2024 — Eligible capital gains recognized in 2023 must be invested by this date.
June 28, 2025 — Eligible capital gains recognized in 2024 must be invested by this date.
June 28, 2026 — Eligible capital gains recognized in 2025 must be invested by this date.
December 31, 2026 — Deferment on original gain ends, and gain is recognized.
April 15, 2027 — Income taxes for 2026 are due. This includes tax payments due on your original deferred gain.
June 28, 2027 — The last date to invest 2026 capital gains. This is also the final deadline to invest in a QOZF for the 10-year gain exclusion.
2028 — The first year in which some of the earliest Opportunity Zone investments may be sold and qualify for the 10-year gain exclusion.
December 31, 2028 — Expiration of the designation of Qualified Opportunity Zones. QOZFs may still be active after this date to receive the 10-year exclusion. Expiration should not have any effect on receiving this incentive.
June 28, 2037 — The earliest date on which the last Opportunity Zone investments may be sold and qualify for the 10-year gain exclusion. Applies to 2026 through June 28, 2027, deferred gains that were invested into a QOF.
10-year gain exclusion also starts ending on this date for deferred gains invested into QOZF from 2026 through June 28, 2027. If held for 10 years, those investments can now be sold.
December 31, 2047 — The ability to eliminate gains on a taxpayer’s QOF investment could cease upon the expiration of QOZ designations.
This material is for general information and educational purposes only. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions. Realized does not provide tax or legal advice. This material is not a substitute for seeking the advice of a qualified professional for your individual situation.
