QOFs and QOZs – Unlocking the opportunity
KPMG Report | March 24, 2020
The 2017 tax reform law added section 1400Z, which allows for the deferral and partial exclusion of gains from the sale or exchange of any asset that is reinvested in a qualified opportunity fund (QOF) that invests in property or businesses located in designated qualified opportunity zones (QOZ). QOZs generally are low-income areas across the United States (including the District of Columbia) and U.S. territories. In addition, any further gains generated through an investment in a QOF may be permanently excluded from income if held for at least 10 years.