News summary · News
The end of the QOF deferral period is quickly approaching. What must I know before year-end?
McDermott Will & Schulte warns investors in existing Qualified Opportunity Funds to prepare for the December 31, 2026 end of their original gain-deferral period. Its client alert explains that taxable gain can become includible even if the fund makes no distribution and sells no property.
The firm highlights the need to calculate the inclusion amount carefully, particularly in leveraged structures where remaining equity may not reflect the tax calculation. It also discusses basis adjustments for qualifying earlier investments and potential year-end planning questions. The alert emphasizes liquidity for the tax obligation alongside investment valuation.
Research considerations
Opportunity Zone coverage can include fund launches, development activity, fundraising, or policy changes. The underlying project and business plan matter alongside the tax framework. Separate the source’s reported development from assumptions about a particular fund or investor.
- Is this a policy update, a project announcement, or a fund-specific development?
- Which project milestones, financing needs, sponsor assumptions, and current legal requirements need further review?
This Sequoia Research summary was prepared with AI assistance from the credited source. It is not independent verification of the source’s claims. The original publisher retains authorship of its reporting; follow the source link for the complete article.
Explore Sequoia Research reports
News can help identify a development worth following. Our investment-offering reports provide a separate, more detailed review of the properties, sponsors, financial assumptions, and risks behind the investment.
- Exclusive opinions & data points: Access our detailed findings, key data points, and independent perspective on the offering’s strengths and risks.
- Thorough expert analysis: Explore a detailed review of the property, sponsor, financial projections, fees, and business plan by industry experts.
- Comparison scorecard: Compare key factors across reviewed offerings using a consistent scorecard that brings our analysis together.
Visit the investment research library to see available offerings and report details. Coverage of a news item does not mean Sequoia Research has reviewed or offers a report on the investment mentioned.