Opportunity Zone Rollover Calculator

QOZ defers and potentially eliminates capital gains tax.

Original capital gain

Years held in QOF

Tax rate %

Appreciation growth rate %

Total tax saved

$732,998

Ending investment value

$4,317,850

Tax if no QOZ

$560,000

How the math works

Original gain deferred; step-up at 5/7 years. 10-year hold → tax-free appreciation. Savings = lump tax − deferred tax + appreciation tax saved.

$2M gain × 8% × 10 yr = $4.32M value. $1.16M gain tax saved on appreciation (10-yr hold). Plus step-up savings — major wealth preservation.

How to Use

Enter original capital gain.
Enter years held in QOF.
Enter tax rate %.
Enter appreciation growth rate %.
Read tax savings.

Frequently Asked Questions

What is QOZ?

IRS-designated low-income census tracts. Investors roll capital gains into Qualified Opportunity Fund (QOF) within 180 days. Benefits: tax deferral on original gain until 2026 (now simplified: deferred to sale), basis step-up on original gain, and tax-free growth on QOF investment if held 10+ years.

Typical timeline?

Day 0: trigger event (stock sale). Day 180: must reinvest to defer. Hold 5 years: 10% basis increase. Hold 7 years: 15% basis increase (for pre-2019 investments; recent rules differ). Hold 10+ years: tax-free appreciation in QOF.

Limitations?

Must invest only gain portion (not full proceeds). QOF must invest in QOZ business property. 90% of QOF assets in qualifying property. Original gain still due in 2026 (minus step-up). Complex compliance — specialists required for large rollovers.