CATALYST OPPORTUNITY ZONE IMPACT FUND 2020, All Rights Reserved

Terms of Use

The Tax Benefit 

Reduction of capital gains

Deferral of recognized capital gains

Elimination of capital gains

If an investor holds a QOZ investment for at least 10 years, then no tax is paid at all on any appreciation of the deferred capital gains in the QOZ investment

If the investor holds a QOZ investment for:

 

  • at least 5 years, then 10% of the deferred gain is permanently forgiven (tax paid on 90% of deferred capital gain)

 

  • at least 7 years, then an additional 5% (total of 15%) of the deferred gain is permanently forgiven (tax paid on 85% of deferred capital gain)

  • defer realized gain from appreciated asset, in most cases an investor must reinvest the gain into a QOF within 180 days of realizing the gain

 

  • The 180-day period ends when capital is contributed to the applicable Qualified Fund, not when capital is committed 

 

  • May defer capital gains tax until the "Recognition Date" defined as the earlier of the date on which the investment is sold or 12/31/2026

Today (2020)
2024
2026
2026 YE
2029 & Beyond

Invest capital in QOZ Fund

Become eligible for 10% tax reduction on deferred capital gains

Become eligible for 15% tax reduction on deferred capital gains

Original Capital Gains Tax Due

No Capital Gains Tax on QOZ Fund Investment appreciation