Anyone having Long term capital gains or short term capital gains can now save on tax by investment in qualified opportunity fund (QOF), which was created under the new code Sections 1400Z-1 and 1400Z-2 of the Tax Cuts and Job Act . This is in addition to Section 1031 exchange rule under which one can defer tax on capital gains now!The purpose of the introduction of Qualified Opportunity Funds is to promote investment in certain economically distressed communities in Qualified Opportunity Zones. What is Qualified Opportunity Funds? Basically, the QOF or Qualified Opportunity Fund is a special investment vehicle, organized as a corporation or a partnership for the purpose of investing in properties after December 31, 2017, within qualified opportunity zones.
Read moreQualified Opportunity Fund (QOF) : New Way to Defer Capital Gains