Opportunity Zones: Your 180-day clock isn’t what you think it is

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By David Wieland | Forbes

In order to qualify for opportunity zone tax benefits, an investor must reinvest capital gains into a qualified opportunity zone (QOZ) eligible investment vehicle within 180 days after recognizing the gain. One hundred eighty days may seem straightforward, but it’s important for investors to know that it might not be if your gains are from the sale of Section 1231 property.

What Is Section 1231 Property?

Section 1231 applies to depreciable property used in a trade or business that has been held for at least one year. A sale or exchange of property held mainly for sale to customers wouldn’t qualify for a Section 1231 gain. In order words, if you can get your investment in the property back by selling it instead of using it in your business, it likely does not qualify. Examples of Section 1231 properties include buildings, equipment, cattle, unharvested crops and other natural resources.

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