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🎧 Listen Now on SpotifyQOF Benefits Calculator
Learn MoreDefer, Reduce, and Eliminate Capital Gains Tax
Investing in a Qualified Opportunity Fund (QOF) offers powerful tax incentives. Use this guide to see how they can work for you.
The Three Core Benefits
A QOF investment provides a unique, three-tiered tax advantage for patient investors.
1. Tax Deferral
Postpone paying tax on your reinvested capital gains until December 31, 2026. This keeps your capital working for you longer.
2. Tax Reduction (Expired)
Past investments held for 5-7 years received a 10-15% basis step-up, making a portion of the original gain tax-free. (Note: This benefit has expired for new investments).
3. Tax Elimination
The most powerful benefit: hold your QOF investment for 10+ years, and any capital gains from the QOF itself are **permanently tax-free**.
Interactive Timeline & Savings Calculator
Enter your capital gain and see how the benefits change based on how long you hold the investment.
Tax on Original Gain
$20,000
(Deferred until 2026)
Tax on QOF Appreciation
$0
(Benefit at 10+ years)
Total Tax Savings
$30,000
(Compared to regular investment)
Visualizing the 10-Year Benefit
This chart compares the total capital gains tax owed on a standard investment versus a 10-year QOF investment, based on the calculator values above.
