OZ Tax Savings Calculator
OZ Fund Calculator
Estimate tax deferral from OZ Fund investments under 2027 OBBBA rules: deferral of the realized gain and step-up basis.
Based on 2027 OBBBA Rules: This calculator reflects the One Big Beautiful Bill Act provisions effective January 1, 2027, including the 5-year rolling deferral, 10% basis step-up for standard QOFs, 30% step-up for Rural QROFs, and elimination of the previous 7-year/15% benefit.
Investment & Tax Details
Enter your capital gain and investment details to estimate potential tax savings.
Your Opportunity Zone Tax Savings Summary
Without OZ Investment
$0
Immediate capital gains tax
Year 5 Step-Up Benefit
$0
10% basis increase
Deferred Gain After Step-Up
$0
Reduced gain subject to deferred tax
10+ Year Holding Benefit
If the OZ investment is held for at least 10 years, any appreciation on the investment itself may be excluded from capital gains tax. Future appreciation, if any, depends on the performance of the underlying investment and is not guaranteed; this calculator does not project future investment growth.
Opportunity Zone Timeline
Day 0 — Asset Sale & Carve Off
Original capital kept: $0
Capital gain carved off: $0
You keep your original cost basis capital; only the gain is reinvested.
Capital gain carved off: $0
You keep your original cost basis capital; only the gain is reinvested.
Within 180 Days — OZ Fund Investment
Gain invested in QOF: $0
Must complete investment within 180 days of gain recognition. Immediate tax deferral begins.
Must complete investment within 180 days of gain recognition. Immediate tax deferral begins.
Years 1-4 — Rolling Deferral Period
Taxes deferred: No tax due on original capital gain during deferral period
Under OBBBA 2027 rules, deferral runs 5 years from investment date (not fixed calendar date).
Under OBBBA 2027 rules, deferral runs 5 years from investment date (not fixed calendar date).
Year 5 — Basis Step-Up Benefit
Step-up applied: $0 (10% increase in basis)
Taxable gain reduced from: $0 to $0
Tax savings at year 5: $0
⚠ Previous 7-year/15% step-up eliminated under OBBBA.
Taxable gain reduced from: $0 to $0
Tax savings at year 5: $0
⚠ Previous 7-year/15% step-up eliminated under OBBBA.
Year 5 — Deferred Gain Becomes Taxable
Tax due on deferred gain (after step-up): $0
Taxes become due on the reduced deferred gain amount (unless OZ investment sold first).
Taxes become due on the reduced deferred gain amount (unless OZ investment sold first).
Years 6-10 — Holding Period
OZ investment continues growing. Deferred gain tax obligation from year 5 remains unless the OZ investment is sold (in which case gain recognition accelerates).
Year 10+ — Exclusion of Tax on New Appreciation
Original gain invested: $0
Key benefit: If the OZ investment is held for at least 10 years, any appreciation on the OZ investment itself may be excluded from capital gains tax. The amount of any future appreciation depends on the performance of the underlying investment and is not guaranteed; the investment may also lose value. This tool does not project future investment growth.
Key benefit: If the OZ investment is held for at least 10 years, any appreciation on the OZ investment itself may be excluded from capital gains tax. The amount of any future appreciation depends on the performance of the underlying investment and is not guaranteed; the investment may also lose value. This tool does not project future investment growth.
Important Disclosures: This calculator provides hypothetical estimates only and is intended for educational purposes. It does not constitute tax, legal, or investment advice. Actual tax benefits depend on individual circumstances, applicable tax laws, fund qualification, holding periods, and other factors. The One Big Beautiful Bill Act provisions described are effective January 1, 2027. The 10% step-up applies to standard Qualified Opportunity Funds; the 30% step-up applies only to Qualified Rural Opportunity Funds (areas with populations under 50,000). The previous 7-year/15% step-up benefit has been eliminated. These provisions reflect current law as of June 2026 and are subject to change. Consult a qualified tax advisor before making investment decisions. Past performance does not guarantee future results. Securities offered through Concorde Investment Services, LLC (CIS), Member FINRA/SIPC.
Ready to Explore Opportunity Zone Investments?
OZ Funds may allow you to defer capital gains tax and potentially exclude tax on future appreciation.