--- title: Qualified Opportunity Zone Program description: Through the opportunity zone program, investors are able to invest capital into low-income communities and promote long-term economic growth. image: https://www.realized1031.com/hubfs/social-suggested-images/Realized_Glossary_Graphic.jpg --- [![Realized 1031 Exchange Marketplace](https://www.realized1031.com/hs-fs/hubfs/Images/Brand/Logo/Realized/Realized-Logo-Black.png?width=240&height=80&name=Realized-Logo-Black.png "Realized 1031 Logo") ](https://www.realized1031.com/) - Better Business Bureau Rating: **A+** - [FINRA BrokerCheck](https://brokercheck.finra.org/firm/summary/22333) - [Call](tel:1-877-797-1031) **(877) 797-1031** # Qualified Opportunity Zone Program The 2017 tax reform reconciliation act (the Act), enacted December 22, 2017, includes a new tax incentive program, Internal Revenue Code Subchapter Z – [Opportunity Zones](https://www.realized1031.com/opportunity-zones), aiming to promote investments in certain economically distressed communities. Through the opportunity zone program, investors are able to invest capital into low-income communities and promote long-term economic growth through a variety of investment vehicles, ie, stock, partnership interest and/or tangible business property. Investors may also receive significant tax benefits that include (i) tax deferral for capital gain invested in a qualified opportunity fund, (ii) elimination of up to 15% of the tax on the capital gain that is invested in the qualified opportunity fund, and (iii) potential elimination of tax when exiting a qualified opportunity fund investment.  All of the underlying incentives relate to the tax treatment of [capital gains](https://www.realized1031.com/glossary/capital-gain), and all are tied to the duration of an investor’s stake in a Qualified Opportunity Fund, providing the most upside to those who hold their investment for 10 years or more. To illustrate, assume that on June 20, 2018, a taxpayer sells property with a basis of $1,000,000 for $2,000,000, resulting in a capital gain of $1,000,000. If a taxpayer holds the investment in the Qualified Opportunity Fund (QOF) for at least 5 years, then the basis of such investment will be increased to 10% of the amount of gain deferred.  Thus, if taxpayer in this example holds the investment in QOF for a period of at least 5 years, then his investment basis will be increased to $100,000 (10% x $1,000,000). If the investment is held by Taxpayer for at least 7 years, the basis is increased by an additional 5% of the amount of the deferred gain. Thus, after 7 years taxpayer's basis would increase to $150,000 [(10% x $1,000,000) + (5% x $1,000,000)]. Now if that investment is held for a period of at least 10 years, the basis of the investment could be equal to the fair market value of the investment on the date it is sold or exchanged. Download The Guide To Opportunity Zones [![Download The Guidebook to QOZ's](https://www.realized1031.com/hs-fs/hubfs/Images/UI/graphics/composites/QOZ-eBook-250.png?width=250&height=250&name=QOZ-eBook-250.png "Learn More About Qualified ...") ](https://www.realized1031.com/glossary/qualified-opportunity-zone-program#blogform) Download eBook ---   --- ### Download The Guidebook to QOZ's ![Download The Guide To Opportunity Zones](https://www.realized1031.com/hs-fs/hubfs/Images/UI/graphics/composites/QOZ-eBook-550.jpg?width=550&height=650&name=QOZ-eBook-550.jpg) Learn More About Qualified Opportunity Zones Investments. By providing your email and phone number, you are opting to receive communications from Realized. If you receive a text message and choose to stop receiving further messages, reply STOP to immediately unsubscribe. Msg & Data rates may apply. To manage receiving emails from Realized visit the Manage Preferences link in any email received. 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("Realized Holdings"). Check the background of this firm on [FINRA's BrokerCheck](https://brokercheck.finra.org/firm/summary/22333). Hypothetical example(s) are for illustrative purposes only and are not intended to represent the past or future performance of any specific investment. Investing in alternative assets involves higher risks than traditional investments and is suitable only for sophisticated investors. Alternative investments are often sold by prospectus that discloses all risks, fees, and expenses. They are not tax efficient and an investor should consult with his/her tax advisor prior to investing. Alternative investments have higher fees than traditional investments and they may also be highly leveraged and engage in speculative investment techniques, which can magnify the potential for investment loss or gain and should not be deemed a complete investment program. The value of the investment may fall as well as rise and investors may get back less than they invested. This site is published for residents of the United States who are accredited investors only. Registered Representatives and Investment Advisor Representatives may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed until appropriate registration is obtained or exemption from registration is determined. Not all of services referenced on this site are available in every state and through every representative listed. For additional information, please contact the Realized Compliance department at 512-472-7171 or info@realized1031.com. - [Terms & Conditions](https://www.realized1031.com/terms-and-conditions) - [Privacy Policy](https://www.realized1031.com/privacy-policy) - [Form CRS](https://www.realized1031.com/hubfs/common-files/disclosures/FormCRS.pdf) - [ADV 2A](https://www.realized1031.com/hubfs/common-files/disclosures/ADV2A.pdf) - [Reg BI Disclosures](https://www.realized1031.com/hubfs/common-files/disclosures/RegBI.pdf) -   © 2026 Realized Holdings, Inc. ```json { "@context" : "http://schema.org/", "@type" : "BlogPosting", "articleBody" : "The 2017 tax reform reconciliation act (the Act), enacted December 22, 2017, includes a new tax incentive program, Internal Revenue Code Subchapter Z – Opportunity Zones, aiming to promote investments in certain economically distressed communities. Through the opportunity zone program, investors are able to invest capital into low-income communities and promote long-term economic growth through a variety of investment vehicles, ie, stock, partnership interest and/or tangible business property. Investors may also receive significant tax benefits that include (i) tax deferral for capital gain invested in a qualified opportunity fund, (ii) elimination of up to 15% of the tax on the capital gain that is invested in the qualified opportunity fund, and (iii) potential elimination of tax when exiting a qualified opportunity fund investment. All of the underlying incentives relate to the tax treatment of capital gains, and all are tied to the duration of an investor’s stake in a Qualified Opportunity Fund, providing the most upside to those who hold their investment for 10 years or more. To illustrate, assume that on June 20, 2018, a taxpayer sells property with a basis of $1,000,000 for $2,000,000, resulting in a capital gain of $1,000,000. If a taxpayer holds the investment in the Qualified Opportunity Fund (QOF) for at least 5 years, then the basis of such investment will be increased to 10% of the amount of gain deferred. Thus, if taxpayer in this example holds the investment in QOF for a period of at least 5 years, then his investment basis will be increased to $100,000 (10% x $1,000,000). If the investment is held by Taxpayer for at least 7 years, the basis is increased by an additional 5% of the amount of the deferred gain. Thus, after 7 years taxpayer's basis would increase to $150,000 [(10% x $1,000,000) + (5% x $1,000,000)]. Now if that investment is held for a period of at least 10 years, the basis of the investment could be equal to the fair market value of the investment on the date it is sold or exchanged.", "author" : { "@type" : "Organization", "email" : "marketing@realized1031.com", "name" : "The Realized Team", "url" : "https://www.realized1031.com/blog/author/the-realized-team" }, "dateModified" : "2022-06-22T19:42:10+0000", "datePublished" : "2022-06-22T19:42:09+0000", "description" : "Through the opportunity zone program, investors are able to invest capital into low-income communities and promote long-term economic growth.", "headline" : "Qualified Opportunity Zone Program", "image" : { "@type" : "ImageObject", "url" : "" }, "mainEntityOfPage" : "https://www.realized1031.com/glossary/qualified-opportunity-zone-program", "name" : "Qualified Opportunity Zone Program", "publisher" : { "@type" : "Organization", "address" : { "@type" : "PostalAddress", "addressCountry" : "USA", "addressLocality" : "Austin", "addressRegion" : "TX", "postalCode" : "78701", "streetAddress" : "500 W 13th Street " }, "logo" : { "@type" : "ImageObject", "height" : 60, "url" : "http://www.realized1031.com/hubfs/Images/Brand/Logo/Realized/Realized-Logo-Black-No-Margin-296x60-AMP.png", "width" : 296 }, "name" : "Realized" } } ```