What You Need to Know About the 2021 OZ Investment Deadline
“When is the deadline to invest in Opportunity Zones in Ohio?” “When is the deadline to invest in Opportunity Zones in Kentucky?”
These are the questions people with capital gains are asking as the end of 2021 approaches. The answer: If you’ve realized capital gains in 2021 or late 2020, now is the time to invest in a qualified Opportunity Zone fund if you want to reduce your tax burden as much as possible.
How the Investing Timeline Works
Those who have a passing familiarity with the Opportunity Zones program know that investing capital gains in a QOF allows the investor to defer them. This will continue to be true moving forward.
One provision of the program makes it possible to reduce those capital gains by 10% when they are eventually taxed. All the investor needs to do to achieve that 10% step up in basis is hold their investment for five years.
Here’s the catch: Capital gains invested in a QOF come due on Dec. 31, 2026. So in order to hit the five-year mark, the investor must invest their gains no later than Dec. 31 of this year.
That means there’s only a few more weeks to hit the 2021 Opportunity Zones investment deadline if you want to get that extra 10% off on capital gains paid in 2026.
Start Preparing Now to Keep Your Taxes Down
If you have capital gains and want to reduce your tax burden and your 2021 tax bill, your best bet is to get the process started now. Luckily, we at Nest Opportunity Fund are ready for the qualified Opportunity Zone deadline, and can work with investors to get them set up and ready to save with plenty of time left in the year.
You can use our calculator tool to find out just how much you could save by investing in our qualified Opportunity Zone fund, or download our fund deck to learn more about the fund. Then, reach out to our team at Nest to get the process started.