Hello investors, I heard that QOF were getting an extension due to Covid. I had the following question to determine if I am still within the window to take advantage of deferring my taxes or not. I still haven't filed my 2020 taxes and have an extension till October
Date I sold my stocks September 2020
QOF created : 10/28/20
I plan to invest the cash in real estate. I have identified the property to invest in but was wondering if it was too late. Can someone shed light on this?
@Raza Rizvi You have 180 days to reinvest your capital gains into a QOF and defer the gains. So, if you created the QOF a month after your realized your capital gains from the sale of stocks, then you can defer those capital gains for 2020. The QOF has 30 months to purchase and substantially improve real estate in an opportunity zone. The QOF can also invest its funds into another QOF.