Opportunity Zone Basis Step Up Calculator

10-year QOZ hold triggers basis step-up. This calculator sizes benefit.

QOF investment

QOF sale value

LTCG rate %

Recapture %

Tax savings from step-up

$666,400

Appreciation amount

$2,800,000

Non-excluded recapture

How the math works

Appreciation = sale − investment. Excluded portion = appreciation − recapture. Tax savings = excluded × LTCG rate.

The 10-year QOZ step-up is the most tax-efficient exit path available for US real estate investors. On $2M invested with 2.4x appreciation, the step-up saves $650k+ at combined federal rates — often more than the QOF's operating return across the full hold. Don't exit before year 10 without running this math first.

How to Use

Enter QOF investment.
Enter projected QOF sale value.
Enter long-term capital gains rate %.
Enter depreciation recapture %.
Read step-up tax savings.

Frequently Asked Questions

Step-up mechanics?

Hold QOF investment 10+ years, elect to step up basis to FMV at sale. Entire appreciation excluded from tax. Unique to QOZ — no other tax structure provides 10-year full exclusion. Effectively turns 2-3x return into tax-free.

Depreciation recapture?

Still recaptured in some cases. IRS guidance evolved — check current rules. Generally: depreciation taken during holding period not subject to recapture at sale (post-2019 final regulations). But applied only to QOF itself, not underlying QOZB property.

Sunset?

Current QOZ program authorized through 2028. Potential extension/modification likely. Keep track of legislative changes — program has been tweaked multiple times since 2017 TCJA.