What Is Qualified Opportunity Fund?
A Qualified Opportunity Fund is an investment vehicle that channels capital gains into designated Opportunity Zones in exchange for federal capital gains tax deferral and, if held long enough, potential exclusion of gains on the new investment.
Why It Matters
Unlike a 1031 exchange, it only requires reinvesting the capital gain (not the full sale proceeds) and doesn't require another piece of real estate to complete the exchange.