They are due upon the earlier of an inclusion event or December 31, 2026. The latter has absolutely zero flexibility.
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When are the taxes on the deferred gains invested into an Opportunity Zone due?
Is there any flexibility on this requirement?
Answers
When you pay your taxes for yearend Dec. 31, 2026.
180 days from the date of sale if the capital gain exists at the individual level. If the gain is generated from a pass-through entity, then you have until the extended due date of the tax return for that entity to invest. Also, if the gains event occurred on or after Oct. 4, 2019, the IRS has extended the deadline until July 15, 2020 due to COVID-19.
The gain is recognized on Dec. 31, 2026 or when the investment is sold. Whenever it is recognized, the tax will be due with that quarter's corresponding estimated tax payment and final due without underpayment penalties generally by April 15th the following year.
There is no flexibility for this requirement the tax is due for the 2026 tax year, so when you file your return for 2026 the tax is due.
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