For investors who want to understand the tax mechanics of a Qualified Opportunity Fund (QOF) at a deeper level, two concepts are central: inside basis and outside basis. These partnership-tax terms determine how gain is calculated and ultimately drive the tax outcome of an OZ investment — including the prized tax-free result at 10 years. In brief, outside basis is your basis in your QOF interest, while inside basis is the partnership's basis in its underlying assets. For a deferred-gain OZ investment, a distinctive feature is that your initial outside basis is generally zero (because the deferred gain wasn't taxed when you invested), and that basis evolves over the hold until, at 10 years, the elective step-up to fair market value eliminates the gain on sale. This guide explains basis basics for QOF investors, inside vs. outside basis, the basis step-up at 10 years, the impact on gain calculation, and how to work with your CPA. This is a technical, CPA-oriented topic — it's educational information, not tax advice; consult your CPA for your specific situation, and verify the current rules, which are evolving.
Basis basics for QOF investors
Basis is the foundational concept for calculating gain or loss on an investment — generally, your basis is what you've invested (your cost), and your gain on sale is the amount realized minus your basis. A higher basis means a smaller taxable gain (and vice versa). So basis is the starting point for every gain calculation, and understanding it is essential to understanding the tax outcome of a QOF investment.
What makes a deferred-gain QOF distinctive is the starting basis. When you roll a capital gain into a QOF, you defer the tax on that gain — and because the gain wasn't taxed, your initial basis in the QOF interest is generally zero. So unlike a typical investment (where your basis equals what you put in), a deferred-gain QOF investor starts with a zero basis, reflecting the untaxed deferred gain. This zero starting point is key to how the QOF's gain calculations work over time.
So basis — and the zero starting basis — frames the QOF tax mechanics. Basis basics for QOF investors — basis being what you've invested (driving gain as amount realized minus basis), and the deferred-gain QOF investor's initial basis being generally zero (because the deferred gain wasn't taxed) — frame the tax mechanics. The zero starting basis is distinctive. Understanding basis sets up the inside-vs-outside distinction. Basis (what you've invested, driving gain) is the foundation, and a deferred-gain QOF investor's initial basis is generally zero because the rolled-in gain wasn't taxed — a distinctive starting point that shapes the QOF's gain calculations over the hold.
Inside vs. outside basis
The inside-vs-outside distinction is a core partnership-tax concept that applies to QOFs structured as partnerships. Outside basis is the investor's basis in their QOF interest — the partner's basis in the partnership interest itself. Inside basis is the partnership's basis in its underlying assets — the basis the fund has in the property it owns. So the two refer to different things: your stake (outside) versus the fund's assets (inside).
These two basis figures can differ and evolve differently, and both matter to the tax outcome. For a deferred-gain QOF investor, the initial outside basis is generally zero (as noted), while the partnership's inside basis in its assets reflects what the fund paid for them. Over the hold, outside basis changes — for example, it increases when the deferred gain is recognized at the recognition date (adding basis), and it's also affected by allocated income and the investor's share of partnership debt. So outside basis isn't static; it adjusts over time.
So inside and outside basis are distinct, evolving figures. Inside vs. outside basis — outside basis being the investor's basis in their QOF interest (generally zero initially for a deferred-gain investor, then adjusting for recognized gain, allocated income, and debt share) and inside basis being the partnership's basis in its underlying assets — are distinct concepts central to QOF tax mechanics. They differ and evolve. Understanding the distinction clarifies how gain is computed. Outside basis is your basis in your QOF interest (initially zero for a deferred-gain investor, then adjusting over the hold), while inside basis is the partnership's basis in its assets — two distinct, evolving figures central to the QOF's tax outcome.
Two kinds of basis are at work in a partnership QOF: outside basis, your stake in the fund — which starts at zero for a deferred gain — and inside basis, the fund's basis in the property it owns.
Basis step-up at 10 years
The basis step-up at the 10-year mark is the mechanism that delivers the OZ program's signature benefit. If you hold your QOF investment for at least 10 years, you can elect to step up your basis in the QOF interest to its fair market value on the date you sell. Because your taxable gain is the amount realized minus your basis, stepping the basis up to fair market value means there's effectively no gain to tax on the sale — the appreciation is excluded.
This is how the 10-year exclusion works mechanically: the elective basis step-up to fair market value eliminates the gain on the QOF investment's appreciation. So the appreciation that accrued over your hold escapes capital-gains tax, because the step-up erases the difference between your sale price and your basis. This applies to the new appreciation of the QOF investment (the growth), not to the original deferred gain (which is recognized and taxed at its earlier recognition date).
So the 10-year step-up is the engine of the tax-free result. Basis step-up at 10 years — the election (after a 10+ year hold) to step up the basis in the QOF interest to fair market value at sale, which eliminates the taxable gain on the investment's appreciation (since gain is amount realized minus basis) — is the mechanism delivering the 10-year exclusion. It makes the new appreciation tax-free. Understanding it shows how the marquee benefit operates. The 10-year basis step-up — electing to raise your basis to fair market value at sale after a 10+ year hold — eliminates the taxable gain on the QOF investment's appreciation, mechanically delivering the OZ program's signature tax-free result on the growth.
Impact on gain calculation
These basis concepts directly determine the gain calculations and the tax outcome at each stage. At the recognition date, the deferred original gain is recognized and taxed — and that recognition adds to your outside basis (you've now been taxed on that amount, so it increases your basis accordingly). So the recognition event both triggers tax on the original gain and adjusts your basis upward.
At sale after 10+ years, your gain is the amount realized minus your (now stepped-up) outside basis — and because the step-up sets the basis to fair market value, the calculation yields effectively no taxable gain on the appreciation. So the basis figures at each point (the zero start, the recognition-date increase, the 10-year step-up) drive the gain you report. Allocated income and partnership debt also affect outside basis along the way, which is why the running basis can be complex and is best tracked by your CPA.
So basis is what determines the gain at every step. Impact on gain calculation — the basis figures driving the reported gain at each stage (the recognition-date increase reflecting the taxed original gain, the 10-year step-up to fair market value eliminating gain on the appreciation, and adjustments for allocated income and debt) — means basis determines the tax outcome throughout. Tracking it is essential. Understanding the impact shows why basis matters. Basis drives the gain calculation at every stage — the recognition-date increase (for the taxed original gain), the 10-year step-up to fair market value (eliminating gain on the appreciation), and adjustments for allocated income and debt — so basis determines the QOF's tax outcome and must be tracked carefully.
- Outside basis is your basis in your QOF interest; inside basis is the partnership's basis in its underlying assets — two distinct concepts.
- A deferred-gain QOF investor's initial outside basis is generally zero, because the rolled-in gain wasn't taxed when invested.
- Outside basis increases over the hold — notably when the deferred gain is recognized at the recognition date, and via allocated income and debt share.
- At 10 years, electing to step up the basis to fair market value eliminates the taxable gain on the QOF investment's appreciation — the mechanism behind the tax-free result.
Working with your CPA
Because basis tracking in a QOF is technical, working closely with your CPA is essential. Your CPA tracks your outside basis over the hold — the zero starting point, the increase at the recognition date, the adjustments for allocated income (reported on your K-1) and your share of partnership debt — so that the gain calculations are correct at each stage. So the CPA maintains the running basis that drives your tax outcome.
Your CPA also handles the mechanics of the 10-year step-up election (ensuring it's made properly to achieve the tax-free result), the reporting of the recognition-date gain, and the coordination of the various forms (such as Form 8949 for the deferral election and the K-1 from a partnership QOF). So the CPA executes the basis-related tax steps and reporting that realize the benefits. Given the complexity and the stakes (the marquee tax benefit), this is not a do-it-yourself area.
So your CPA is central to getting the basis mechanics right. Working with your CPA — relying on the CPA to track outside basis over the hold (the zero start, recognition-date increase, allocated income and debt adjustments), handle the 10-year step-up election and recognition-date reporting, and coordinate the forms — is essential, given the technical, high-stakes nature of QOF basis. The CPA realizes the benefits. Understanding this shows why professional help is essential. Work closely with your CPA on QOF basis — they track your outside basis over the hold, handle the 10-year step-up election and recognition-date reporting, and coordinate the forms, getting the technical, high-stakes mechanics right so the tax benefits are realized properly.
Common points of confusion
Several points commonly confuse investors learning about QOF basis. One is conflating inside and outside basis — they're different (your interest versus the fund's assets), and using one when you mean the other leads to errors. Another is assuming your initial basis equals what you invested — for a deferred-gain QOF, the initial outside basis is generally zero, not the amount of the gain you rolled in, because that gain wasn't taxed. So the zero starting basis surprises those expecting a cost-equals-basis result.
Another confusion is thinking the 10-year step-up eliminates tax on everything — it eliminates tax on the QOF investment's appreciation (the new growth), but the original deferred gain is still recognized and taxed at its recognition date (it's not erased by the step-up). And some assume basis is static — in fact, outside basis evolves over the hold (the recognition-date increase, allocated income, debt). So clearing up these confusions is important to understanding the mechanics accurately.
So accurate understanding requires dispelling these confusions. Common points of confusion — conflating inside and outside basis, assuming initial basis equals the amount invested (it's generally zero for a deferred gain), thinking the step-up eliminates all tax (it eliminates tax on the appreciation, not the original gain), and assuming basis is static (it evolves) — are worth clearing up. Accuracy matters for the tax outcome. Understanding the confusions sharpens the picture. Avoid common QOF-basis confusions: inside and outside basis are different, initial outside basis is generally zero (not the amount invested), the 10-year step-up eliminates tax on the appreciation (not the original gain), and basis evolves over the hold — accuracy here is essential to the tax outcome.
How Baker 1031 helps you understand basis
Baker 1031 Investments helps investors understand the tax mechanics of a QOF at a conceptual level — including inside versus outside basis, the zero starting basis for a deferred gain, the 10-year step-up, and how basis drives the gain calculation — so you can appreciate how the benefits work and coordinate effectively with your CPA, who handles the technical details.
QOF interests and related securities are offered through the broker-dealer, Aurora Securities, Inc. (member FINRA/SIPC), and any recommendation follows a suitability review (OZ fund investments are typically appropriate for accredited investors). We do not provide tax or legal advice — basis tracking, the step-up election, and the related reporting are your CPA's domain, and this material is educational, not tax advice. We emphasize verifying the current rules, which are technical and evolving. Our role is to help you understand the QOF tax mechanics conceptually — so you grasp why the zero starting basis, the recognition-date adjustment, and the 10-year step-up matter, and can have an informed conversation with your CPA — and to help you access suitable, well-vetted funds if appropriate for your situation. The basis concepts are central to the QOF's tax outcome, and we help you understand them at a high level while ensuring your CPA handles the precise calculations and elections, so the benefits are realized correctly. We coordinate with your tax professionals throughout, recognizing that this is a technical, high-stakes area where professional execution is essential.
Frequently Asked Questions
What is the difference between inside and outside basis in a QOF?
Outside basis is the investor's basis in their QOF interest — the partner's basis in the partnership interest itself. Inside basis is the partnership's basis in its underlying assets — the basis the fund has in the property it owns. So the two refer to different things: your stake in the fund (outside) versus the fund's assets (inside). For a deferred-gain QOF investor, the initial outside basis is generally zero (because the deferred gain wasn't taxed when invested), while the partnership's inside basis in its assets reflects what the fund paid for them. These two figures can differ and evolve differently over the hold, and both matter to the tax outcome. Understanding the distinction is important because outside basis drives your personal gain calculation (especially the 10-year step-up), while inside basis relates to the fund's asset-level tax position. This is a technical, CPA-oriented topic — consult your CPA for your specific situation, as the mechanics are detailed and the rules are evolving.
Why is my initial outside basis in a QOF zero?
For a deferred-gain QOF investment, your initial outside basis is generally zero because the gain you rolled into the QOF wasn't taxed when you invested. Basis generally reflects amounts you've been taxed on or paid with after-tax dollars — but when you defer a capital gain by investing it in a QOF, that gain is untaxed (deferred), so it doesn't give you basis. Hence the zero starting point. This is distinctive: in a typical investment, your basis equals what you put in, but in a deferred-gain QOF, the deferred (untaxed) nature of the gain means you start with zero basis. This zero basis is important to the mechanics — it's why, without the 10-year step-up, a sale would produce a large taxable gain, and it's why outside basis must increase over the hold (notably when the deferred gain is recognized). So the zero initial basis reflects the deferred gain's untaxed status. Confirm the specifics with your CPA, as basis mechanics are technical and your situation may have nuances.
How does outside basis change over the hold?
Outside basis isn't static — it evolves over the QOF hold. Starting from generally zero (for a deferred gain), it increases at key points. Most notably, when the deferred original gain is recognized at the recognition date, that recognition adds to your outside basis (you've now been taxed on that amount, so your basis increases accordingly). Outside basis is also affected by allocated income (income the partnership allocates to you, reported on your K-1, increases basis) and by your share of partnership debt (which can affect basis in a partnership structure). Distributions and allocated losses can decrease it. So outside basis adjusts up and down over time based on these events. This running basis is what drives your gain calculation at sale, which is why tracking it accurately matters. Because the adjustments are technical (especially debt-share rules and income allocations), your CPA should maintain your outside basis over the hold. Confirm the specifics with your CPA, as the rules are detailed and your situation determines the exact adjustments.
How does the 10-year basis step-up work?
If you hold your QOF investment for at least 10 years, you can elect to step up your basis in the QOF interest to its fair market value on the date you sell. Because your taxable gain is the amount realized minus your basis, stepping the basis up to fair market value means there's effectively no gain to tax on the sale — the appreciation is excluded. So this is how the 10-year exclusion works mechanically: the elective basis step-up to fair market value eliminates the gain on the QOF investment's appreciation. The appreciation that accrued over your hold escapes capital-gains tax because the step-up erases the difference between your sale price and your basis. Note this applies to the new appreciation (the growth), not the original deferred gain (which is recognized and taxed at its earlier recognition date). So the 10-year step-up is the engine of the tax-free result on the appreciation. It's an election, so it must be made properly — your CPA handles the mechanics. Confirm the current rules and timing with your CPA.
Does the step-up eliminate tax on my original gain too?
No — the 10-year basis step-up eliminates tax on the QOF investment's appreciation (the new growth), not on your original deferred gain. The original gain you rolled into the QOF is recognized and taxed at its recognition date (a fixed December 31, 2026 for OZ 1.0 investments, or a rolling 5 years for OZ 2.0 investments) — it's not erased by the step-up. So there are two distinct pieces: the original gain (deferred, then taxed at the recognition date) and the new appreciation (eliminated by the 10-year step-up). The step-up applies only to the latter. This is a common point of confusion — investors sometimes think the 10-year benefit makes everything tax-free, but it only makes the new appreciation tax-free; the original gain is still taxed (just deferred). So distinguish the two: deferral (then tax) on the original gain, elimination on the new appreciation. Understanding this distinction is essential to accurate expectations. Confirm the specifics and timing with your CPA, as the recognition-date rules and step-up mechanics are technical and evolving.
What is inside basis used for?
Inside basis — the partnership's basis in its underlying assets — relates to the fund's asset-level tax position. It's used in the partnership's own tax calculations, such as depreciation on the fund's property and the gain or loss the partnership would recognize if it sold an asset. Inside basis affects the income, deductions, and gains the partnership computes and allocates to its partners. While outside basis drives your personal gain on selling your QOF interest, inside basis operates at the fund level, affecting items that flow through to you (like depreciation deductions or allocated gains). The relationship between inside and outside basis can be complex, and in some partnership situations there are mechanisms (like basis adjustments) to align them, though the OZ context has its own specific rules. For most investors, the practical focus is on outside basis (your interest), while inside basis is part of the fund's accounting. So inside basis is the fund's asset basis, used in its tax computations. Your CPA and the fund's accountants handle these calculations; confirm the specifics with your tax advisor, as the mechanics are technical.
Why does basis matter for my QOF tax outcome?
Basis matters because your taxable gain is the amount realized minus your basis — so basis directly determines the gain you report and the tax you owe at each stage. For a QOF, the basis story drives the entire tax outcome: the zero starting basis (for a deferred gain) means a sale without the step-up would produce a large gain; the recognition-date increase reflects the taxed original gain; and the 10-year step-up to fair market value eliminates the gain on the appreciation. So tracking basis correctly is what realizes the benefits — get the basis wrong, and the gain calculation (and tax) would be wrong. Allocated income and partnership debt also adjust outside basis along the way, affecting the running figure. So basis is the thread connecting deferral, recognition, and the 10-year exclusion — it's the mechanism by which the QOF's tax benefits are calculated and delivered. This is why accurate basis tracking by your CPA is essential. Confirm the specifics with your CPA, as the basis mechanics are technical and central to your tax outcome.
Are these basis concepts only for partnership QOFs?
The inside-vs-outside basis distinction is specifically a partnership-tax concept, so it applies most directly to QOFs structured as partnerships (a common structure). In a partnership QOF, you have outside basis (in your partnership interest) and the partnership has inside basis (in its assets), and the K-1 reporting and basis adjustments follow partnership rules. QOFs can also be structured as corporations, in which case the basis mechanics differ (corporate basis rules apply, without the inside/outside partnership framework in the same way). So the precise basis concepts depend on the fund's structure. Many of the broader points — the zero starting basis for a deferred gain, the 10-year step-up eliminating gain on appreciation — apply across structures in concept, but the detailed mechanics (especially the inside/outside distinction and debt-share rules) are partnership-specific. So confirm your QOF's structure and the applicable basis rules with your CPA, since the structure determines exactly how the basis concepts apply. This is a technical area where the fund's form matters, and professional guidance is essential.
How does partnership debt affect my outside basis?
In a partnership, a partner's outside basis generally includes the partner's share of the partnership's liabilities (debt), under the partnership basis rules. So if a partnership QOF has debt (for example, financing on its development projects), your allocable share of that debt can increase your outside basis, and changes in the debt or your share can adjust it over the hold. This is a technical feature of partnership taxation — debt-share allocations depend on the type of debt (recourse vs. nonrecourse) and the partnership agreement, and they can be complex. For a QOF investor, the debt-share effect is one of several adjustments to outside basis over time (alongside the recognition-date increase and allocated income). Because these rules are intricate, your CPA tracks the debt-share component of your basis. So partnership debt can affect your outside basis, but the specifics depend on the debt's nature and your share. This is firmly a CPA-handled area; confirm how your QOF's debt affects your basis with your tax advisor, as the partnership debt-allocation rules are detailed and situation-specific.
Do I need to understand basis to invest in a QOF?
You don't need to master the technical basis mechanics yourself — that's your CPA's job — but a conceptual understanding helps you appreciate how the QOF's benefits work and have an informed conversation with your tax advisor. Knowing that your initial outside basis is generally zero (for a deferred gain), that it adjusts over the hold, and that the 10-year step-up to fair market value is what eliminates tax on the appreciation gives you a clearer picture of the tax outcome and why the long hold matters. So a high-level grasp is valuable, even though the precise calculations and elections are handled by your CPA. The detailed work — tracking the running basis, making the step-up election, coordinating the forms — is technical and high-stakes, and not a do-it-yourself area. So understand the concepts to be an informed investor, but rely on your CPA for the execution. This educational overview is meant to build that conceptual understanding, not to substitute for professional tax advice. Consult your CPA for your specific situation and the current rules.
What forms are involved in QOF basis and reporting?
Several forms come into play. To make the deferral election (rolling a gain into the QOF), an investor generally reports it on Form 8949 (with the related capital-gains schedules) for the year of the gain. The QOF itself self-certifies and reports its 90% asset test compliance on Form 8996. If the QOF is a partnership, it issues investors a Schedule K-1 reporting their allocable share of income, deductions, and other items, which feed into the investor's outside basis tracking. At the recognition date, the deferred gain is reported (and the basis adjusted), and at sale after 10+ years, the step-up election and the sale are reported. So the reporting spans the deferral election, the annual K-1s, the recognition-date inclusion, and the eventual sale with the step-up. These forms and their interplay are technical, which is why your CPA coordinates them to ensure the basis tracking and elections are correct. So confirm the specific forms and reporting for your situation with your CPA, as the requirements depend on the fund's structure and your circumstances, and the rules are evolving.
Can a basis mistake cost me the tax benefit?
Potentially, yes — because basis drives the gain calculation, errors in tracking or in making the 10-year step-up election could affect your tax outcome. For example, if the step-up election isn't made properly at sale after 10+ years, you might not get the basis raised to fair market value, which could leave appreciation taxable that should have been excluded. Or mis-tracking the running outside basis (the recognition-date increase, allocated income, debt share) could produce an incorrect gain calculation. So getting the basis mechanics right is essential to realizing the benefits, and mistakes can be costly. This is precisely why the technical work belongs with your CPA — accurate basis tracking and proper elections protect the tax benefits, while errors can undermine them. So don't treat basis as an afterthought; ensure your CPA tracks it carefully and handles the elections and reporting correctly. The stakes (the marquee 10-year exclusion) make professional execution important. Confirm that your CPA is tracking your QOF basis and prepared to handle the step-up election, as the rules are technical and the consequences material.
How does the recognition date affect my basis?
At the recognition date, the deferred original gain is recognized and taxed — and that recognition adds to your outside basis. The logic is that once you've been taxed on the deferred gain (at the recognition date), that amount now gives you basis (you've effectively paid tax on it, like after-tax dollars). So your outside basis, which started at generally zero, increases by the recognized gain amount at the recognition date. This is an important adjustment: it means that after the recognition date, your basis reflects the now-taxed original gain, which matters for subsequent gain calculations. (The recognition date is a fixed December 31, 2026 for OZ 1.0 investments, or a rolling 5 years for OZ 2.0 investments.) So the recognition date both triggers the tax on the original gain and steps your basis upward accordingly. This interplay — tax due, basis up — is part of the basis evolution your CPA tracks. So the recognition date is a key basis event. Confirm the timing and the basis adjustment for your situation with your CPA, as the rules are technical and depend on your program version.
Is this basis topic something I handle myself or with a professional?
This is firmly a professional, CPA-handled area — the technical basis tracking, the step-up election, and the related reporting should be done by your CPA, not by you alone. QOF basis involves intricate partnership-tax rules (outside vs. inside basis, debt-share allocations, income adjustments, the recognition-date increase, the 10-year step-up election), and errors can affect your tax benefits. So while a conceptual understanding helps you be an informed investor and communicate with your advisor, the execution belongs with a qualified tax professional. This material is educational, not tax advice — it's meant to build your conceptual understanding, not to enable do-it-yourself basis calculations. Given the stakes (the marquee tax benefits) and the complexity (evolving, technical rules), professional guidance is essential. So understand the concepts, but rely on your CPA for the precise work. Consult your CPA for your specific situation, and verify the current rules, which are technical and evolving. The combination of your conceptual understanding and your CPA's execution gives the best outcome.
How does Baker 1031 help me understand basis?
We help you understand the tax mechanics of a QOF at a conceptual level — including inside versus outside basis, the zero starting basis for a deferred gain, the 10-year step-up, and how basis drives the gain calculation — so you can appreciate how the benefits work and coordinate effectively with your CPA, who handles the technical details. QOF interests are offered through the broker-dealer, Aurora Securities, Inc. (member FINRA/SIPC), and any recommendation follows a suitability review (OZ fund investments are typically appropriate for accredited investors). We do not provide tax or legal advice — basis tracking, the step-up election, and the related reporting are your CPA's domain, and this material is educational, not tax advice. We emphasize verifying the current rules, which are technical and evolving. We help you understand the concepts so you can have an informed conversation with your CPA, and we help you access suitable, well-vetted funds if appropriate for your situation, coordinating with your tax professionals throughout, recognizing that this is a high-stakes area where professional execution is essential.
Glossary
- Basis
- What you've invested, used to compute gain or loss.
- Outside Basis
- The investor's basis in their QOF interest.
- Inside Basis
- The partnership's basis in its underlying assets.
- Zero Starting Basis
- A deferred-gain investor's generally zero initial basis.
- Deferred Gain
- The untaxed gain rolled into the QOF.
- Recognition Date
- When the deferred gain is taxed and basis increases.
- Basis Step-Up
- Raising basis to fair market value at the 10-year sale.
- Fair Market Value
- The sale-date value the basis steps up to.
- 10-Year Exclusion
- The tax-free result the step-up delivers.
- Amount Realized
- Sale proceeds, minus basis to compute gain.
- Allocated Income
- Partnership income (via K-1) increasing basis.
- Partnership Debt
- A partner's debt share affecting outside basis.
- Schedule K-1
- Partner reporting feeding basis tracking.
- Form 8949
- Where the deferral election is reported.
- Gain Calculation
- Amount realized minus basis, driven by basis figures.
- Suitability Review
- Assessing whether a QOF fits the investor.
Sources & References
- Cornell Legal Information Institute. 26 U.S. Code § 1400Z-2 — Special rules for capital gains invested in opportunity zones
- IRS. Opportunity Zones Frequently Asked Questions
- CDFI Fund. Opportunity Zones
- Economic Innovation Group. Opportunity Zones 2.0: Where Things Stand After the One Big Beautiful Bill Act
Disclosures
This article is published by Baker 1031 Investments, LLC for general educational purposes for accredited investors and is not an offer to sell or a solicitation of an offer to buy any security, nor is it tax, legal, accounting, or investment advice or a recommendation. Any securities offering is made solely through a sponsor’s private placement memorandum (PPM) following a suitability determination. Securities offered through Aurora Securities, Inc. (ASI), member FINRA / SIPC; Baker 1031 Investments is independent of ASI.
Oil & gas mineral and royalty interests and DST programs are speculative, illiquid securities sold only to verified accredited investors and involve substantial risk, including possible loss of principal, commodity-price and production-decline risk, lack of control, and the risk that an intended 1031 exchange fails to qualify for tax deferral. Whether a particular interest qualifies as like-kind real property is a fact-specific legal determination that varies by state and by the terms of the instrument. Tax results depend on your individual circumstances. Consult your own CPA and attorney before acting. Past performance does not guarantee future results.
