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Opportunity Zone Investment Calculator

Calculate tax benefits of investing in Qualified Opportunity Zones.

Holding Period Benefits

Holding Years:9
Basis Step-Up:10%
Exclusion:No

Timeline Status

MilestoneStatus
180-Day Investment DeadlineMust invest within 180 days of gain
5-Year Hold (10% step-up)Achieved ✓
7-Year Hold (15% step-up)Not available (invested post-2018)
10-Year Hold (exclusion)1 years remaining
Dec 31, 2026 RecognitionDeferred gain recognized

Deferred Gain Treatment

Original Deferred:$ 50000
After Step-Up:$ 45000
Tax Due:$ 10800
Deferred gain recognized in year 2026 (or earlier if QOF sold)

Appreciation & Exclusion

Projected Appreciation:$ 13500
Tax Saved:$ 0
Final Basis:$ 100000

Total Tax Savings

Step-Up Savings:$ 1200
Exclusion Savings:$ 0
Total Saved:$ 1200

Recommendation

5-year benefit achieved (10% step-up). Deferred gain reduced by 10%. Hold 7+ years for additional 5% (if invested by 2018). Appreciation still taxable unless 10-year hold.

Key Deadlines

  • Investment deadline: Dec 31, 2021 (for 10-year exclusion)
  • 180 days from capital gain to invest
  • 5-year hold by Dec 31, 2024 (for 10% step-up)
  • 7-year hold by Dec 31, 2026 (for additional 5%)
  • Deferred gains recognized Dec 31, 2026
  • 10-year hold for appreciation exclusion

Opportunity Zone Key Points

  • Invest capital gains within 180 days
  • 5-year hold: 10% basis step-up
  • 7-year hold: additional 5% (15% total)
  • 10-year hold: exclude ALL appreciation
  • Deferred gain recognized Dec 31, 2026
  • Must invest by Dec 31, 2021
  • QOZ property: stock, partnership, real estate
  • Form 8949 for reporting
  • State tax treatment varies
  • Research QOZ census tract designation
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