# The end of the QOF deferral period is quickly approaching. What must I know before year-end?

Canonical page: https://sequoia-research.com/news/the-end-of-the-qof-deferral-period-is-quickly-approaching-what-must-i-know-before-yea-dc18ee62

Author: Sequoia Research
Published: 2026-10-16T22:42:52.129Z
Updated: 2026-10-16T23:18:09.268Z
Original source: [McDermott Will & Schulte](https://www.mcdermottlaw.com/insights/the-end-of-the-qof-deferral-period-is-quickly-approaching-what-must-i-know-before-year-end/)
Source published: 2026-10-12T07:00:00.000Z
Type: News
Topics: OZ Funds

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.

[Read the original](https://www.mcdermottlaw.com/insights/the-end-of-the-qof-deferral-period-is-quickly-approaching-what-must-i-know-before-year-end/)

## 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.

## About Sequoia Research

Sequoia Research, LLC is an independent real estate investment research firm providing analysis of Delaware Statutory Trusts (DSTs), Tenant in Common (TIC) investments, Opportunity Zone Funds, and mineral rights and royalties.

Explore our reports for property and sponsor analysis, financial assumptions, risks, and comparison scorecards. News inclusion does not imply that a report on the particular investment is available.

[Investment research library](https://sequoia-research.com/sequoia-all-1031.html)
[Brokerage research](https://sequoia-research.com/sequoia-1031-dst-broker-rankings.html)
[Coverage policy](https://sequoia-research.com/news/about)
[Research disclosures and terms](https://sequoia-research.com/terms.html)