By Dees Stribling
This New Year's Eve isn't the only deadline that matters for OZ investors, just the one that happens to be front and center right now. Another deadline — marking the last time investors could get a tax break on a 2018 capital gain — passed in June, but it spawned a separate Dec. 31 deadline: for QOFs set up early this year, they have less than two and a half months to invest those funds in an OZ project or business.
This year's deadline means that for investments made in a QOF before Jan. 1 and held for seven years, investors will not pay tax on 15% of their deferred capital gains. For investments made for two years after Jan. 1, they won't pay tax on 10% of their deferred capital gains — still a discount, but not quite as good a deal. Read more.