Deferral Recognition: December 31, 2026
Calculate your December 31 Opportunity Zone tax event in minutes
All deferred capital gains in Qualified Opportunity Zone funds must be recognized on December 31, 2026. Model your tax exposure, valuation strategy, and re-deferral options before the deadline.
$75B+ invested in Qualified Opportunity Zone funds since 2018
- 1December 31, 2026 is a hard statutory deadline — all deferred QOZ gains are taxed regardless of whether you sell or hold
- 2IRS taxes the lesser of original gain or current FMV — an independent valuation before Dec 31 could legally reduce your tax bill
- 3OBBBA made the QOZ program permanent with new rolling 5-year rules — existing investors face the 2026 event while new investors get different treatment
Be the first to know when this launches
Frequently Asked Questions
- What happens to QOZ investments on December 31, 2026?
- All capital gains deferred into Qualified Opportunity Zone funds must be recognized as taxable income on December 31, 2026, regardless of whether you sell or continue holding the investment.
- Can I reduce my QOZ tax bill with a valuation?
- Yes. The IRS taxes the lesser of your original deferred gain or the current fair market value of the QOF investment. If your investment has declined in value, an independent appraisal before December 31 can reduce your tax liability.
- Is the QOZ program permanent after OBBBA?
- Yes. The One Big Beautiful Bill Act (signed July 4, 2025) made the QOZ program permanent with new rolling 5-year deferral rules for investments made after 2026. Existing investors still face the December 31, 2026 recognition event.
- Can I re-defer my QOZ gains into a new fund?
- Potentially. Investors can sell a QOF investment before December 31, 2026 and re-invest into another QOF under the new permanent rules, which offer rolling 5-year deferrals with a 10% step-up basis.
Ready to stop worrying about compliance?