QOFs may defer and even minimize capital gains tax

Description

Abstract: When individuals sell a business interest, real estate or other highly appreciated property, they’ll likely be hit with a substantial capital gains tax bill. One way to soften the blow — if they’re willing to tie up the funds long term — is to “roll over” the gain into a qualified opportunity fund (QOF). This article describes the benefits of a new federal QOF program, including deferring, and even reducing, the tax on the original gain and possibly avoiding tax on future appreciation within the QOF.