Opportunity Zone Capital Gains Question

[Cody DeLong]

I receive a K1 every year through my main business I own 25% of. My % of profit and dividends are listed on it each year and are considered long term capital gains. I haven’t and do not plan on selling shares. Can I invest those dividends into an opportunity fund to defer the taxes?

[Lance Lvovsky]

Originally posted by @Cody DeLong:

I receive a K1 every year through my main business I own 25% of. My % of profit and dividends are listed on it each year and are considered long term capital gains. I haven’t and do not plan on selling shares. Can I invest those dividends into an opportunity fund to defer the taxes?

 Dividends cannot be used to defer taxes under IRC 1400Z governing Opportunity Zones. It must be capital gain (short-term or long-term).