Interactive Tools

OZ Fund Calculator

Estimate capital gains deferral from a Qualified Opportunity Fund under the 2027 OBBBA rules, including the five-year basis step-up. For accredited investors.

Rolling an eligible capital gain into a Qualified Opportunity Fund within 180 days of the sale defers federal tax on that gain. The amount deferred is the gain — sale price minus cost basis — multiplied by your combined long-term capital gains rate, the 3.8% Net Investment Income Tax where it applies, and any state rate. Holding the fund investment for five years adds a basis step-up that excludes a portion of the deferred gain; the balance becomes taxable at the end of the statutory deferral period rather than in the year of sale.

Gain = Sale price − Cost basis Tax without OZ = Gain × (long-term rate + NIIT + state rate) Step-up benefit = Gain × step-up % × combined rate

The figures below are an estimate for educational purposes. Opportunity Zone funds are private, illiquid and limited to accredited investors. Confirm your own numbers with your CPA or tax advisor before acting. For how the permanent rules change the timing of all of this, see our Journal post Opportunity Zone 2.0 Opens January 1.

Estimated tax without an OZ investment —

Immediate capital gains tax on the figures below — the amount a qualifying rollover would defer. An estimate for educational purposes; confirm with your CPA.

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.

Rural QROFs target areas with populations under 50,000.

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.
Within 180 Days — OZ Fund Investment
Gain invested in QOF: $0
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).
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.
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).
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.
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.

Frequently Asked Questions

Common Questions

What is a Qualified Opportunity Zone (OZ) fund?
An Opportunity Zone fund invests in designated economically distressed communities. In exchange, investors who roll eligible capital gains into the fund can defer tax on those gains and, if they hold long enough, may reduce or eliminate tax on the fund’s future appreciation.
What tax benefits can an OZ investment provide?
The two core benefits are deferral of the originally realized capital gain and potential tax-free growth on the new OZ investment if held for the required period. Specific rules and holding periods change over time, so current figures should be confirmed with your tax advisor.
What are the risks of Opportunity Zone investing?
OZ funds are private, illiquid, long-hold investments limited to accredited investors, and they involve real estate and development risk including possible loss of principal. Tax benefits depend on meeting holding-period and compliance requirements. This tool is an estimate, not tax advice.

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These investments are speculative, illiquid, and involve risk including possible loss of principal; they are available only to verified accredited investors. Distributions are not guaranteed.

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