Advisor Insights

Must-Knows About Qualified Opportunity Funds

Helen Modly, CFP, CPWA

The Tax Cuts and Jobs Act, enacted on Dec. 22, 2017, established new tax codes that provide significant tax deferral opportunities for recently realized capital gains when they are invested in a Qualified Opportunity Fund (QOF or O Fund) for at least five years. There are still many unanswered questions about how exactly this will work in practice, and investors are waiting on soon-to-be-released Treasury Department regulations for guidance. But there is substantial interest on the part of large private client banks, hedge funds and ultrahigh-net-worth individuals.

Here are some must-knows so far.

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