Lower your capital gain taxes with Opportunity Zones 2.0. Free tax calculator, resources, and more.
Joined May 2026
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2047 vs 30 years.
Hold a Qualified Opportunity Fund stake 10+ years and you can elect fair market value basis at sale, so the growth isn't federally taxed.
Invested by 2026: sell by Dec 31, 2047.
Invested 2027 or later: 30-year cap.
Not tax advice.
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Same $1M price, 4x the work.
An Opportunity Fund buying an existing building has 30 months to add more than the building's basis. Land is excluded.
$800K land / $200K building: improve more than $200K.
$200K land / $800K building: more than $800K.
That's why fund buyers ask for the land and building split early.
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Full proceeds vs just the gain.
To defer all the gain in a 1031 exchange, you reinvest the full net proceeds into like-kind real property and replace any debt paid off.
A Qualified Opportunity Fund only needs the gain. Your original basis comes back to you, and the gain can come from stock, crypto or a business, not just real estate.
Not tax advice.
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8997 vs 8996.
Investors file Form 8997 with their return every year they hold a Qualified Opportunity Fund interest, from the year they invest through the year they sell.
The fund files Form 8996 to self-certify and report the 90% asset test.
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2047 vs 30 years.
Hold a Qualified Opportunity Fund interest 10+ years and you can elect fair market value basis when you sell, so the growth isn't hit by federal capital gains tax.
Invested by Dec 31, 2026: the election ends after Dec 31, 2047.
Invested in 2027 or later: basis is capped at value 30 years after investing.
Not tax advice.
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30% vs 10%.
Hold a Qualified Rural Opportunity Fund for 5 years and 30% of the deferred gain is permanently excluded. A standard QOF gets 10%.
Rural property also only needs 50% substantial improvement, not 100%.
2,594 of the 6,576 designated tracts are rural.
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$0 OZ tax break for living in it.
Buying a home in a zone defers no gain. OZ benefits run through a Qualified Opportunity Fund, and its property must be used in a business.
The home sale exclusion still applies: $250K, or $500K for most joint filers.
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2018 zone, 2027 no.
400 E Jefferson Ave in Detroit is in tract 26163517200. It was a 2018 Opportunity Zone. It's not on the final list that takes effect Jan 1, 2027.
Wayne County has 65 designated tracts. Check the tract, not the ZIP.
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14 days.
Comments on IRS Notice 2026-55 are due Nov 23, 2026. It asks about six OZ 2.0 topics, including single-family home construction, working-capital safe harbors and the 30-year rule.
Docket IRS-2026-1156 on Regulations.gov.
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$700K vs $400K.
Sell a $1M rental: $600K basis, $300K mortgage payoff. A 1031 that defers the full $400K gain needs all $700K of cash in $1M+ of new property.
A Qualified Opportunity Fund needs only the $400K gain, within 180 days. You keep $300K.
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Form 8997 vs Form 8996.
8997 is the investor's form. You file it with your 1040 every year you hold a Qualified Opportunity Fund interest: the year you invest, each year you hold, and the year you sell.
8996 is the fund's form. The QOF uses it to self-certify and report its 90% asset test.
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50,000 people.
Under OZ 2.0, a tract is rural only if it's entirely outside any city over 50,000 and its adjacent urbanized area.
In an all-rural zone, a fund that buys an existing building must improve it by more than 50% of its basis, not 100%.
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2,000 of 6,576.
Four states hold almost a third of OZ 2.0's designated tracts: California 620, Texas 608, New York 430 and Florida 342. They take effect Jan 1, 2027.
Every state's count: opportunityzoneinvest.com/tr…
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320 then, 260 now.
Ohio had 320 Opportunity Zones on the 2018 map. Treasury's final OZ 2.0 list designates all 260 tracts it nominated, the most it could pick from 1,040 eligible. 96 are rural, and Cuyahoga County has 39. They take effect Jan 1, 2027.
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All 260 census tracts nominated by the DeWine Administration for the federal Opportunity Zones program recently received approval from the U.S. Department of the Treasury.
Read More: bit.ly/4zv4lj7
ALT For Immediate Release: Governor DeWine Announces 260 New Opportunity Zones Across Ohio. Ohio Department of Development logo. Image, flushed right: a row of businesses on a main street.
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OZ 2.0 starts Jan 1, 2027. All 6,576 nominated tracts were designated as Qualified Opportunity Zones — 2,594 of them rural — per Treasury’s Nov 5 release.
Treasury, #IRS announce Opportunity Zones designations for over 6,500 communities across America. ow.ly/2lvz5104v7Q
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OZ 2.0's final map is locked: 6,576 designated tracts nationwide, 2,594 of them rural, drawn from 25,462 eligible. They take effect Jan 1, 2027.
Every state's count:
opportunityzoneinvest.com/tr…
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DST or Opportunity Zone?
A Delaware statutory trust can be 1031 replacement property: you reinvest the full proceeds in like-kind real estate.
An OZ fund takes only the capital gain, within 180 days. Under OZ 2.0 (investments after Dec 31, 2026), that starts a 5-year deferral clock, a 10% basis step-up (30% in a qualified rural fund), and a path to exclude growth after 10 years.
They don't stack on the same gain.
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90%.
That’s the share of a Qualified Opportunity Fund’s assets that must be QOZ property on each testing date. Fall short and the fund can owe a monthly penalty — and investors can lose the tax benefits they planned for.
Funds self-certify on Form 8996. Not tax advice.
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180 days.
That’s the window to invest a realized capital gain into a Qualified Opportunity Fund after the sale. Miss it and that gain stays taxable in the year you sold.
For a normal sale the clock usually starts on the closing date. Day 180 counts; weekends don’t extend it. Not tax advice.
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Treasury's final OZ 2.0 list designates all 91 tracts Colorado nominated as Opportunity Zones, effective Jan 1, 2027. opportunityzoneinvest.com/ne…
