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How can a QOF reinvest proceeds from the sale of property and defer the taxable gain?

What are the rules for the QOF to reinvest and be able to defer the taxable gain within the 10-year holding period?


Answers
  • Matthew Rappaport
    July 25, 2020

    Sales by a QOF of QOZP prior to the ten-year mark come with regular tax consequences, so you will need to use a deferral technique to avoid recognition of taxable income. These techniques include Section 1031 and Section 1045 exchanges. You will need to consult tax counsel to structure one of these.

  • Guy Nicio
    July 24, 2020

    The QOF has 12 months to reinvest into a new qualified zone business property.

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