What is Qualified opportunity zone?
In short
A qualified opportunity zone is a designated low-income area. Investors who reinvest capital gains in a qualified opportunity fund within 180 days can defer the gain, and appreciation on investments held at least 10 years can be excluded.
Key takeaways
- The One Big Beautiful Bill Act made the program permanent, with rolling zone designations.
- New deferral and basis rules apply to investments made after 2026.
- The fund must invest mainly in qualifying zone property or businesses.
Where it's tested
TCP: Property Transactions: Advanced Planning — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
A taxpayer sells equipment with an adjusted basis of $60,000 (original cost $100,000, accumulated depreciation $40,000) for $120,000, receiving payments over four years. What is recognized in the year of sale beyond any installment gain on the first payment?