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Loophole

QOF 10-Year Basis Step-Up

Hold a Qualified Opportunity Fund 10 years — all appreciation tax-free.

Overview

Separate from the initial gain deferral: after holding a QOF investment for 10+ years, you can elect to step up basis to FMV on sale — permanently eliminating tax on ALL post-investment appreciation. Combine with self-directed QOF for maximum control.

Best fit
Long-horizon QOF investorsFounders reinvesting exit proceedsReal estate developers
Estimated impact
100% federal tax elimination on 10-yr appreciation

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