Investor Tax Strategy

Qualified Opportunity Zones (QOZ)

Leverage federally designated areas to defer, reduce, and eliminate capital gains taxes while supporting community revitalization.

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Axria QOZ Investment
The Basics

What is a QOZ?

A Qualified Opportunity Zone is a federally designated area that offers significant tax advantages when eligible capital gains are reinvested through a Qualified Opportunity Fund (QOF).

Long term focus Asset protection Place based investing
Eligible Capital Gains
  • Stock market sales
  • Real estate sales
  • Business equity sales
  • Cryptocurrency gains
  • Art & Collectible sales

Three Main Tax Benefits

1
Defer Capital Gains

Reinvest eligible gains through a Qualified Opportunity Fund to defer federal tax on the original gain until Dec 31, 2026.

2
Reduce What You Owe

Investors who hold the fund for at least 5 years prior to the recognition date may receive a 10% step-up in basis on the original gain.

3
Eliminate Tax on Growth

After a 10-year hold, any appreciation on the QOZ investment itself becomes permanently tax-free upon sale.

How it works: A scenario

Let's assume you realize a $100,000 capital gain from a stock sale and reinvest that amount into an Axria QOZ Fund.

This illustration assumes current tax laws apply. Consult your tax professional for your specific situation.
DAY 1
Day 1 - 180

You must reinvest the capital gain into a QOF within 180 days of the sale.

Yr 5
Basis Step-Up

Your taxable gain basis increases by 10%, effectively reducing taxable liability on the original $100k.

Yr 10
Tax-Free Exit

The investment has grown to $500k. The $400k in profit is 100% tax-free federal capital gains.

Qualified Opportunity Zone FAQs

Frequently Asked Questions

Common investor questions about Qualified Opportunity Zones and how the tax strategy works.

A Qualified Opportunity Zone is a federally designated area created to encourage long term private investment. Investors who reinvest capital gains into eligible projects may qualify for significant federal tax benefits.

Most capital gains qualify, including gains from
  • Public equities
  • Private business sales
  • Real estate transactions
  • Cryptocurrency
Ordinary income does not qualify.

Any individual or entity that has realized a capital gain may be eligible. This includes gains from stocks, real estate, business sales, or other taxable investments.

QOZ investments provide three potential benefits
  • Deferral of federal capital gains tax
  • Reduction of the taxable portion of the original gain when held long enough
  • Elimination of federal tax on new appreciation after a ten year hold
These benefits are designed to reward long term investment.

A QOZ investment can eliminate 100 percent of federal capital gains tax on the new appreciation if held for at least ten years. The original gain is deferred and may be partially reduced, but it is not fully eliminated.

Capital gains must be reinvested into a Qualified Opportunity Fund within one hundred eighty days of realizing the gain.

A minimum holding period of ten years is required to receive the full tax free appreciation benefit. Shorter holds may still offer deferral and partial reduction.

This information is for general educational purposes only and does not constitute tax, legal, or investment advice.

Is a QOZ Strategy right for you?

Timing is critical with Opportunity Zones. Contact our investment team to discuss your eligibility and how this asset class fits your portfolio.

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