Short-term gains are eligible for deferral, but upon recognition, they are still treated as short-term gains, regardless of the QOF equity holding period.
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How does the Opportunity Zone program work with short-term capital gains?
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Short-term capital gains are eligible for investment and deferral in a qualified opportunity fund. Keep in mind that they retain their character as short-term capital gains when they are recognized (whether in 2026 or sooner).
There is no tax benefit for short term capital gains rolled into an Opportunity Zone investment.
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