Opportunity Zones are back — and now is the time for investors to start planning ahead!
Starting January 1, 2027, the next phase of the Opportunity Zone program – often called
QOZ 2.0 – will begin accepting new investments under a permanent framework, with
updated tax incentives and a renewed focus on economic impact.
For investors with recent capital gains, the new program offers a few key potential benefits:
- First, a rolling five-year deferral on those recognized gains
- Second, a 10% step-up in basis on those deferred gains when investors report them in 5 years
- And third, the long-term benefit remains one of the most compelling features of the program: Once a QOZ investment is held for at least 10 years, federal capital gains taxes are eliminated from any gains generated by the QOZ investment
Investors have 180 days to reinvest realized capital gains into a QOZ investment. Most gains generated after mid-July may be eligible for January investment — but did you know that certain K-1 Partnership gains occurring in the first half of 2026 may be eligible as well?
With January 2027 approaching, investors should begin evaluating their potential gains, and exploring QOZ strategies that may align with their long-term objectives.
QOZ 2.0 reintroduces a powerful tax-advantaged solution and investors may benefit from
evaluating potential opportunities in advance.
Consult your CPA or Financial Advisor to confirm if your capital gains qualify.