QOZ Basis Step-Up
For investments made on or after January 1, 2027, a 10% increase in basis after five years (30% for rural funds), which reduces the deferred gain that is taxed.
Nashional Investments · Updated October 2026
Educational definition only, not investment, tax or legal advice.
In practice
Opportunity Zone rules turn on timing: when the gain was realized, when it is reinvested, and how long the fund investment is held. Understanding QOZ Basis Step-Up matters because it can affect how much gain is deferred or excluded. The rules for investments made from January 1, 2027 differ from the original program, so we check which regime applies before recommending a Qualified Opportunity Fund.
Common questions.
What does the term QOZ Basis Step-Up mean?
Why does QOZ Basis Step-Up matter for investors?
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