Opportunity Zone Deferral Calculator

QOZ defers gains and eliminates appreciation on 10+ year hold.

Original capital gain

Original gain tax rate %

QOF projected growth %

Future tax rate %

Total tax savings

$124,950

Deferred tax value

$5,950

Appreciation tax saved

$119,000

How the math works

Deferred tax value (10-year hold) ≈ 5% time value. Appreciation tax saved = QOF growth × tax rate.

$500k gain × 100% growth = $500k apprec × 23.8% = $119k saved + ~$5,950 deferral value = $124,950.

How to Use

Enter original capital gain.
Enter original gain tax rate %.
Enter qof projected growth %.
Enter future tax rate %.
Read total tax savings.

Frequently Asked Questions

QOZ tax benefits stack?

Defer original capital gain: invest in QOF within 180 days of sale, defer tax until 12/31/2026 or sale of QOF. Eliminate appreciation: 10-year hold = $0 tax on QOF appreciation. No basis step-up benefit anymore (eliminated 2026). State conformity varies. Best for: post-2026, the only remaining benefit is appreciation elimination on 10-year hold. QOF requirement: 90% in QOZ property/business. Substantial improvement test: 100% basis improvement within 30 months for real estate.

How is this tax impact computed?

Tax outcomes depend on filing status, income bracket, depreciation schedule, basis adjustments, AMT exposure, and state conformity. Real estate tax planning typically involves cost segregation, 1031 exchanges, opportunity zone, depreciation recapture, passive activity rules, and entity structure (LLC vs partnership vs S-corp). This calculator provides directional analysis — final position requires CPA review.

State conformity?

States vary on conformity to federal tax code: California, NY, MA decouple selectively. Bonus depreciation: most states reduce or eliminate. QBI: most states don't conform. Section 1031: federal-only deferral, some states require state-level recapture. Property tax cap: state-specific (CA Prop 13, MI Headlee, FL SOH). Multi-state property requires apportionment analysis.

When to prioritize this strategy?

Tax strategies have setup cost, complexity, and audit risk. Cost segregation: $5–15k study, materially helps high-basis investors. 1031: 45/180 day deadlines, identification rules, qualified intermediary fees. Opportunity Zone: long hold required. Stack strategies: don't double-count benefits. CPA + tax attorney coordination essential for $1M+ strategies.