One Big Beautiful Bill (OB3) Qualified Opportunity Zones (QOZs)

The current QOZ rules remain through 2026.  The new provision begins 2027.

This investment has multiple benefits.  You can use it to defer any time of gain, whether long-term, short-term, real estate, stock sale, etc.  Each state governor has been given authority to select qualifying tracts, or blighted and/or rural, undeveloped areas.

If you hold the investment for 10 years or more, the deferred gain, and any gains during the hold period are tax free.  This 10-year period is a rolling period, beginning 1-1-2027.

We do not recommend that an individual investor purchase a QOZ property.  This would only be appropriate for a very sophisticated and wealthy investor due to the complexities of the arrangement.  Normally, an investor would invest in a Qualified Opportunity Fund (QOF) that is structured specifically to purchase QOZ properties.