Investors exploring real estate often encounter both Opportunity Zone funds (QOFs) and real estate investment trusts (REITs) — and may wonder how they compare. Although both involve real estate, they're fundamentally different vehicles serving different purposes. A REIT is a company that owns or finances income-producing real estate, can be publicly traded (and therefore liquid), and pays dividends — it's an income-focused, diversified investment with no special capital-gains deferral mechanism. A QOF is a development-focused, illiquid vehicle built around the Opportunity Zone tax benefits (deferral of any capital gain plus tax-free growth after a 10-year hold). Comparing them on tax treatment, liquidity, and development-vs-income focus reveals that the right choice depends on your goals: income and liquidity point toward a REIT, while tax-deferred growth on a gain over a long horizon points toward a QOF. This guide compares the two and explains how to choose. Note that OZ rules are time-sensitive and evolving — verify the current rules with your tax advisor; this is educational information, not investment or tax advice.
QOF vs. REIT basics
Start with what each vehicle actually is. A REIT (real estate investment trust) is a company that owns, operates, or finances income-producing real estate — apartments, offices, retail, industrial, data centers, and more — and that, in exchange for distributing most of its taxable income to shareholders, avoids corporate-level tax. REITs can be publicly traded on stock exchanges (liquid) or non-traded (less liquid), and they pay dividends to investors from the rental and interest income their portfolios generate. So a REIT is essentially a stock-like ownership stake in a diversified, income-producing real estate portfolio.
A QOF (Qualified Opportunity Fund) is a very different animal. It's an investment vehicle organized to invest in Opportunity Zone property — typically development or substantial-improvement projects in designated low-income communities — and to deliver the OZ tax benefits to investors who roll capital gains into it. A QOF self-certifies via IRS Form 8996 and must keep at least 90% of its assets in qualifying OZ property. It's illiquid, development-focused, and structured around a long (10-year) hold, with the marquee benefit being tax-free appreciation after that hold. So a QOF is a tax-incentivized development vehicle, not an income-and-liquidity vehicle.
So the basic distinction is clear. QOF vs. REIT basics — a REIT being a company owning or financing income-producing real estate, often publicly traded and dividend-paying, diversified and income-focused; and a QOF being a development-focused, illiquid Opportunity Zone vehicle built around capital-gain deferral and tax-free 10-year growth — frame two very different investments. The REIT is income-and-liquidity oriented; the QOF is tax-and-growth oriented. Understanding what each vehicle is sets up the comparison. A REIT is a company holding income-producing real estate (often traded, dividend-paying), while a QOF is an illiquid, development-focused Opportunity Zone vehicle built around capital-gain deferral and tax-free 10-year growth — two fundamentally different investments.
Tax treatment compared
The tax treatment of the two vehicles differs sharply. A REIT has no special capital-gains deferral mechanism — you buy in with after-tax dollars (or within a retirement account), and the REIT pays you dividends, which are largely taxed as ordinary income (though a portion may be a return of capital, and some may be capital gain or qualify for the 20% qualified-business-income deduction on ordinary REIT dividends). When you eventually sell your REIT shares, any gain is a normal capital gain. So a REIT delivers taxable income along the way and a taxable gain on sale, with no built-in deferral of an incoming gain.
A QOF is the opposite — it exists largely for its tax benefits. You fund a QOF by rolling a capital gain into it within 180 days, which defers the tax on that original gain to a later recognition date. Then, if you hold the QOF investment for at least 10 years, you can elect to step up your basis to fair market value at sale, making the QOF investment's appreciation tax-free. So the QOF defers your incoming gain and eliminates tax on the new growth — a powerful combination a REIT simply doesn't offer.
So the tax stories are nearly mirror images. Tax treatment compared — a REIT offering no capital-gains deferral, paying largely ordinary-income dividends and a taxable gain on sale; and a QOF deferring an incoming capital gain (to a later recognition date) and making the new appreciation tax-free after a 10-year hold — shows the QOF's defining tax advantage for someone with a gain to defer. The REIT is taxed conventionally; the QOF is tax-incentivized. Understanding the contrast shows why the QOF appeals to gain-holders. A REIT has no gain-deferral mechanism (ordinary-income dividends, taxable sale), while a QOF defers an incoming capital gain and eliminates tax on its 10-year appreciation — the QOF's signature tax edge for investors with a gain.
A REIT taxes you conventionally — ordinary-income dividends now, a capital gain when you sell. A QOF flips that script: it defers the gain you bring in and erases tax on whatever your capital grows into over ten years.
Liquidity differences
Liquidity is one of the starkest contrasts between the two. A publicly traded REIT is highly liquid — its shares trade on a stock exchange, so you can buy or sell on any trading day at the market price, much like any stock. Even non-traded REITs, while far less liquid, typically offer some periodic redemption program (with limits). So a REIT — especially a traded one — lets you access your capital relatively easily, which is valuable if your circumstances change or you need the money.
A QOF is illiquid by design. There's generally limited or no secondary market for QOF interests, and the strategy depends on a long hold (ideally 10+ years for the tax-free exclusion). So your capital is committed for a decade or more, with little ability to exit early. Selling before the 10-year mark would also forfeit the marquee tax benefit. This illiquidity is the price of the QOF's tax advantages — you trade access to your capital for deferral and tax-free growth.
So liquidity sharply separates the vehicles. Liquidity differences — a publicly traded REIT being highly liquid (exchange-traded, sellable any day), even non-traded REITs offering some redemption; versus a QOF being illiquid by design (limited or no secondary market, a 10-year hold, with early exit forfeiting the benefit) — make the REIT the choice for accessible capital and the QOF a long-term lock-up. The REIT offers liquidity; the QOF demands commitment. Understanding this shows a key practical difference. A REIT (especially traded) is liquid and accessible, while a QOF is illiquid by design with a 10-year hold — so liquidity needs strongly favor the REIT, while the QOF suits only long-term, lock-up-tolerant capital.
Development vs. income focus
The two vehicles also differ in their fundamental investment focus. A REIT is income-focused — it owns stabilized, income-producing properties (already built and leased) and distributes the rental income as dividends. REITs are typically diversified across many properties (and often across property types and geographies), giving investors broad exposure and a steady income stream. So a REIT is built to generate and distribute current income from a diversified portfolio of operating real estate.
A QOF is development-focused. Most QOFs undertake ground-up development or substantial improvement of OZ property — creating value over time rather than collecting income from stabilized assets. This means a QOF carries development and execution risk (construction, lease-up, business-plan execution) and typically generates little or no current income during the build; its return comes from the appreciation realized over the long hold. So a QOF is built to create value through development, not to distribute current income.
So focus is a third axis of difference. Development vs. income focus — a REIT being income-focused (stabilized, income-producing properties, diversified, distributing dividends) and a QOF being development-focused (ground-up or substantial-improvement projects, carrying development risk, with returns from appreciation rather than current income) — shows the vehicles pursue different return profiles. The REIT pays income from operating assets; the QOF builds value through development. Understanding the focus shows what kind of return each targets. A REIT is income-focused (stabilized, diversified, dividend-paying), while a QOF is development-focused (creating value through projects, with appreciation rather than income as the payoff) — a core difference in return profile and risk.
These structural contrasts have practical implications for portfolio construction. An investor seeking predictable cash flow and broad diversification leans toward REITs, which spread capital across many stabilized assets and pay regular dividends. An investor with a large capital gain and a long horizon, willing to forgo current income for tax-advantaged appreciation, leans toward a QOF and its concentrated, development-driven upside.
- A REIT is a company owning or financing income-producing real estate (often publicly traded, dividend-paying, diversified) with no special capital-gains deferral.
- A QOF is a development-focused, illiquid Opportunity Zone vehicle built around deferring a capital gain and making the new appreciation tax-free after a 10-year hold.
- Tax and liquidity differ most: the QOF offers gain deferral and tax-free growth but is illiquid for a decade; the REIT offers liquidity and income but no deferral.
- Choose based on goals: income and liquidity point to a REIT; tax-deferred growth on a gain over a long horizon points to a QOF.
Choosing between them
Choosing between a QOF and a REIT comes down to your goals, not to which is universally 'better' — they serve different purposes. If your priority is current income and liquidity — you want regular dividends and the ability to sell when you choose — a REIT fits better, offering income from a diversified, often-traded portfolio. If you don't have a capital gain to defer, the QOF's signature benefit (deferral) doesn't even apply to you, which often points toward a REIT or other vehicle.
If, on the other hand, you have a capital gain you want to defer and you can commit capital for the long term (10+ years), the QOF's tax benefits — deferring the gain and making the appreciation tax-free — can be compelling, provided you can accept the illiquidity and development risk. So the QOF suits a gain-holder with a long horizon and tolerance for lock-up and development risk, while the REIT suits an income-and-liquidity seeker. Many investors may even hold both, for different parts of their portfolio and different objectives.
So the decision is goal-driven. Choosing between them — a REIT for current income, liquidity, and diversification (especially without a gain to defer), and a QOF for tax-deferred growth on a capital gain over a long horizon (accepting illiquidity and development risk) — depends on what you're trying to achieve. Income and liquidity point to the REIT; tax-deferred growth on a gain points to the QOF. Understanding your goals points to the right vehicle. Choose a REIT for income, liquidity, and diversification, or a QOF for tax-deferred growth on a capital gain over a long horizon with tolerance for illiquidity and development risk — the right choice follows your goals.
Common misconceptions
Several misconceptions confuse investors comparing QOFs and REITs. One is that they're interchangeable real estate investments — they aren't; they differ fundamentally in tax treatment, liquidity, and focus, and they serve different goals. Another is that a QOF is 'a REIT with tax benefits' — but a QOF is generally a development vehicle with no current income and a long lock-up, not a diversified, income-paying, liquid portfolio. So treating them as similar leads to poor decisions.
Another misconception is that the QOF's tax benefits make it automatically superior — but the benefits only matter if you have a capital gain to defer and the investment performs over a long hold; for an investor wanting income and liquidity, a REIT may be far more suitable. And some assume REIT dividends are tax-free or lightly taxed — in fact, REIT dividends are largely ordinary income (with some return of capital or capital-gain components), so the REIT has its own ongoing tax profile. So accurate expectations require understanding each vehicle's real characteristics.
So clearing up the misconceptions sharpens the comparison. Common misconceptions — that QOFs and REITs are interchangeable, that a QOF is just a tax-advantaged REIT, that the QOF's tax benefits make it automatically better regardless of goals, and that REIT dividends are tax-light — all distort the comparison. The vehicles are fundamentally different and goal-dependent. Understanding the misconceptions supports a clear-eyed choice. Don't treat QOFs and REITs as interchangeable or assume one is automatically better — they differ in tax, liquidity, and focus, and the right choice depends entirely on your goals and whether you have a gain to defer.
How Baker 1031 helps you compare
Baker 1031 Investments helps investors understand the differences between Opportunity Zone funds and REITs — the tax treatment, liquidity, and development-vs-income focus — so you can determine which vehicle (or combination) fits your goals, whether you're seeking income and liquidity or tax-deferred growth on a capital gain.
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 don't provide tax or legal advice — your CPA handles the tax mechanics of either vehicle, which are technical and time-sensitive — and we emphasize verifying the current OZ rules and designations, which are evolving. We help you compare the vehicles honestly: a REIT for income, liquidity, and diversification; a QOF for deferring a capital gain and pursuing tax-free growth over a long, illiquid hold. If a QOF is suitable for your situation, we help you access well-vetted funds, coordinating with your tax professionals. Our role is to help you understand both vehicles clearly and choose based on your goals, not on the assumption that one is universally better — so your real estate allocation reflects what you're actually trying to achieve, with realistic expectations about each vehicle's tax, liquidity, and risk profile.
Frequently Asked Questions
What is the difference between an Opportunity Zone fund and a REIT?
A REIT is a company that owns, operates, or finances income-producing real estate, can be publicly traded (and therefore liquid), and pays dividends — it's an income-focused, diversified investment with no special capital-gains deferral mechanism. A QOF (Qualified Opportunity Fund) is a development-focused, illiquid vehicle organized around the Opportunity Zone tax benefits — it defers an incoming capital gain (rolled in within 180 days) and, after a 10-year hold, makes the investment's appreciation tax-free. So they differ fundamentally: the REIT delivers income and liquidity from a diversified portfolio of stabilized properties, while the QOF delivers tax-deferred growth on a gain through development projects, with a long lock-up. They aren't interchangeable; each serves a different goal. Understanding these differences — in tax treatment, liquidity, and focus — is essential to choosing the right vehicle for your situation.
How are QOFs and REITs taxed differently?
A REIT has no capital-gains deferral mechanism — you invest after-tax dollars, receive dividends (largely taxed as ordinary income, with some return of capital or capital-gain components), and realize a normal taxable capital gain when you sell your shares. A QOF, by contrast, is built around tax benefits: you fund it by rolling a capital gain into it within 180 days, which defers the tax on that original gain to a later recognition date; then, if you hold for at least 10 years, you can elect to step up your basis to fair market value at sale, making the QOF investment's appreciation tax-free. So the QOF defers your incoming gain and eliminates tax on the new growth, while the REIT taxes you conventionally (ordinary-income dividends and a taxable sale). This tax difference is the QOF's defining advantage for an investor with a capital gain to defer. Confirm the specifics with your CPA, as rules are technical and evolving.
Which is more liquid, a QOF or a REIT?
A REIT is generally far more liquid — a publicly traded REIT trades on a stock exchange, so you can buy or sell on any trading day at the market price, much like a stock. Even non-traded REITs, while much less liquid, typically offer some periodic redemption program (with limits). A QOF, by contrast, is illiquid by design — there's generally limited or no secondary market for QOF interests, and the strategy depends on a long hold (ideally 10+ years for the tax-free exclusion). So your capital is committed for a decade or more, with little ability to exit early, and selling before the 10-year mark would forfeit the marquee tax benefit. So the REIT — especially a traded one — is the liquid choice, while the QOF demands a long-term commitment. Liquidity needs strongly favor the REIT; the QOF suits only capital you can lock up for the long haul.
Is a QOF just a REIT with tax benefits?
No — that's a common misconception. A QOF is generally a development vehicle: it undertakes ground-up development or substantial improvement of Opportunity Zone property, typically generates little or no current income during the build, and is illiquid with a long lock-up. A REIT, by contrast, owns stabilized, income-producing properties (already built and leased), is often diversified across many assets, pays regular dividends, and (if traded) is liquid. So they differ not just in tax treatment but in their entire structure and return profile — the QOF creates value through development and pays off via tax-free appreciation, while the REIT distributes current income from operating real estate. Treating a QOF as 'a REIT with tax benefits' misunderstands its development focus, illiquidity, and lack of current income. They're fundamentally different vehicles serving different goals, not variations of the same thing. Evaluate each on its actual characteristics.
Do REITs offer any Opportunity Zone tax benefits?
No — a standard REIT does not offer the Opportunity Zone tax benefits. The OZ benefits (deferral of an incoming capital gain and tax-free appreciation after a 10-year hold) are specific to investing eligible capital gains into a Qualified Opportunity Fund that meets the OZ requirements (including the 90% asset test and Form 8996 self-certification). A typical REIT isn't structured as a QOF and doesn't deliver these benefits — REIT dividends are largely taxable as ordinary income, and gains on REIT shares are normal capital gains. So if your goal is to defer a capital gain and pursue tax-free growth under the OZ program, a REIT generally won't accomplish that; a QOF is the vehicle for OZ benefits. So don't expect OZ tax treatment from a conventional REIT investment. Confirm the structure of any specific vehicle with your tax advisor, as the OZ benefits depend on meeting the program's technical requirements.
Which should I choose, a QOF or a REIT?
It depends on your goals. If your priority is current income and liquidity — you want regular dividends and the ability to sell when you choose — a REIT fits better, offering income from a diversified, often-traded portfolio. If you don't have a capital gain to defer, the QOF's signature benefit (deferral) doesn't apply, which often points toward a REIT. If, on the other hand, you have a capital gain you want to defer and you can commit capital for the long term (10+ years), the QOF's tax benefits — deferring the gain and making the appreciation tax-free — can be compelling, provided you can accept the illiquidity and development risk. So income and liquidity point to a REIT, while tax-deferred growth on a gain over a long horizon points to a QOF. Many investors hold both for different objectives. There's no universal answer — the right choice follows your goals, liquidity needs, and whether you have a gain to defer.
Can I invest in both a QOF and a REIT?
Yes — they aren't mutually exclusive, and many investors hold both for different parts of their portfolio and different objectives. A REIT can provide current income, liquidity, and broad real estate diversification, while a QOF can defer a specific capital gain and pursue tax-free growth over a long hold. So you might allocate liquid, income-focused capital to a REIT and roll a large capital gain into a QOF for its tax benefits, accepting that portion's illiquidity. Holding both lets you pursue income and liquidity through one vehicle and tax-deferred growth through the other. The key is to match each vehicle to the role it plays in your plan — REIT for income and liquidity, QOF for deferring a gain over a long horizon. So yes, investors commonly use both, sizing each appropriately for its purpose and liquidity profile, consistent with their overall financial plan and risk tolerance. Coordinate with your advisor and CPA on the mix.
Are REIT dividends tax-free?
No — REIT dividends are generally taxable, and largely as ordinary income. A REIT distributes most of its taxable income to shareholders, and those distributions are typically taxed at ordinary-income rates rather than the lower qualified-dividend rates (though a portion may be a return of capital, which reduces your basis rather than being currently taxed, and some may be capital gain). Ordinary REIT dividends may qualify for the 20% qualified-business-income deduction, which can lower the effective rate somewhat. So REIT dividends are not tax-free — they carry their own ongoing tax profile, largely ordinary income. This contrasts with a QOF, where the goal is to defer an incoming gain and make the new appreciation tax-free (with little or no current income during the hold). So don't assume REIT income is tax-light; factor the ordinary-income treatment of REIT dividends into your comparison. Confirm the tax character of any specific REIT's distributions with your CPA, as it varies by REIT and year.
Is a QOF riskier than a REIT?
In several respects, yes — a QOF generally carries more concentrated and development-oriented risk than a diversified REIT. Most QOFs are development vehicles, so they bear construction, lease-up, and execution risk, and they're often concentrated in a single project or a handful of projects in specific markets. A QOF is also illiquid, committing your capital for a decade with limited exit ability. A diversified, publicly traded REIT, by contrast, spreads risk across many stabilized, income-producing properties and offers liquidity, which can cushion individual asset or market problems. So the QOF's development focus, concentration, and illiquidity make it generally higher-risk than a diversified REIT — though the QOF offers tax benefits the REIT doesn't. So weigh the QOF's higher risk against its tax advantages, and recognize that both can lose money. Neither is guaranteed; evaluate each investment's merits, and size your allocation appropriately for the risk and liquidity profile.
Do I need a capital gain to invest in a QOF?
To capture the QOF's signature tax benefit (deferral), yes — the deferral applies to eligible capital gains rolled into the QOF within 180 days. If you don't have a capital gain to defer, the QOF's central tax advantage doesn't apply to your investment (you could still invest non-gain dollars in some structures, but you wouldn't get the deferral on those, and the structure is built around the gain-deferral mechanism). So the QOF is primarily designed for investors with a capital gain they want to defer. A REIT, by contrast, requires no capital gain — anyone can buy in with after-tax dollars (or in a retirement account) for income and diversification. So if you don't have a gain to defer, a REIT (or another vehicle) is often more appropriate than a QOF. So the presence of a capital gain is a key factor pointing toward (or away from) a QOF. Confirm your gain's eligibility and the structure with your CPA before investing.
What kind of real estate does a QOF invest in versus a REIT?
A QOF invests in Opportunity Zone property — typically development or substantial-improvement projects in designated low-income communities (the OZ tracts). So QOF real estate is concentrated in specific, government-designated zones and is usually development-stage (ground-up construction or major renovation), not stabilized. A REIT, by contrast, can own income-producing real estate of almost any type, anywhere — apartments, offices, retail, industrial, data centers, healthcare, and more — and typically holds stabilized, operating properties across diverse markets. So the QOF's real estate is geographically constrained (to OZs) and development-focused, while the REIT's is broad and income-focused. This means a QOF gives you targeted exposure to OZ development, while a REIT gives you diversified exposure to operating real estate. Understanding what each invests in helps clarify the very different exposures they provide. Verify the current OZ designations (which are being updated under the permanent program) when considering a QOF's locations.
Which is better for retirement income, a QOF or a REIT?
For retirement income, a REIT is generally the better fit. REITs pay regular dividends from the rental income their portfolios generate, providing a current income stream that can support retirement cash-flow needs, and (if traded) they're liquid, so you can access capital as needed. A QOF, by contrast, typically generates little or no current income during its development hold and is illiquid for a decade — so it doesn't provide retirement income and ties up capital you might need. So for an investor seeking income and liquidity in retirement, a REIT (or other income-producing investment) is usually more appropriate than a QOF. The QOF suits a different goal — deferring a capital gain and pursuing long-term tax-free growth — that doesn't align with current-income needs. So match the vehicle to your need: a REIT for retirement income and liquidity, a QOF for tax-deferred growth on a gain over a long horizon. Discuss your income needs and time horizon with your advisor to determine the right allocation.
How does the 90% asset test relate to a QOF versus a REIT?
The 90% asset test is a QOF requirement, not a REIT one. To qualify as a Qualified Opportunity Fund, the fund must hold at least 90% of its assets in qualifying Opportunity Zone property, tested semiannually, and it self-certifies via IRS Form 8996. Failing this test can trigger penalties and, if persistent, jeopardize the fund's QOF status and the associated tax benefits. A REIT has its own separate set of qualification requirements (such as asset and income tests and the requirement to distribute most of its taxable income), but those are REIT rules under different parts of the tax code — not the OZ 90% test. So the 90% asset test is part of what defines and governs a QOF, ensuring it actually invests in OZ property; it doesn't apply to REITs. So when evaluating a QOF, the sponsor's discipline in meeting the 90% test matters for preserving the tax benefits. Confirm the compliance track record of any QOF sponsor, and verify the current rules with your tax advisor.
Is a non-traded REIT similar to a QOF?
They share illiquidity, but they're still fundamentally different. A non-traded REIT isn't exchange-listed, so it's far less liquid than a traded REIT — typically offering only limited periodic redemptions. In that sense, it resembles a QOF's illiquidity more than a traded REIT does. However, a non-traded REIT is still an income-focused vehicle owning stabilized, income-producing real estate and paying dividends, with no OZ tax-deferral mechanism. A QOF remains a development-focused vehicle built around deferring a capital gain and delivering tax-free 10-year appreciation, generally without current income. So while both can be illiquid, their tax treatment and investment focus differ sharply — the non-traded REIT pays taxable income from operating assets, while the QOF defers a gain and targets tax-free development appreciation. So don't equate them based on illiquidity alone; the tax and focus differences remain decisive. Evaluate each on its tax treatment, income profile, and goals, and confirm the specifics with your advisor and CPA.
How does Baker 1031 help me compare QOFs and REITs?
We help you understand the differences between Opportunity Zone funds and REITs — the tax treatment, liquidity, and development-vs-income focus — so you can determine which vehicle (or combination) fits your goals, whether you're seeking income and liquidity or tax-deferred growth on a capital gain. 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 don't provide tax or legal advice — your CPA handles the tax mechanics of either vehicle — and we emphasize verifying the current OZ rules and designations, which are evolving. We help you compare honestly: a REIT for income, liquidity, and diversification; a QOF for deferring a capital gain and pursuing tax-free growth over a long, illiquid hold. If a QOF is suitable, we help you access well-vetted funds, coordinating with your tax professionals so your choice reflects your actual goals.
Glossary
- REIT
- A company owning or financing income-producing real estate.
- QOF
- A Qualified Opportunity Fund investing in OZ property.
- Publicly Traded REIT
- An exchange-listed, liquid REIT.
- Non-Traded REIT
- A REIT not exchange-listed (less liquid).
- Dividend
- A REIT's income distribution to shareholders.
- Ordinary Income
- How most REIT dividends are taxed.
- Return of Capital
- A distribution reducing basis, not currently taxed.
- Capital-Gain Deferral
- The QOF benefit a REIT lacks.
- 10-Year Exclusion
- Tax-free QOF appreciation after a 10-year hold.
- Development Focus
- The QOF's ground-up or improvement orientation.
- Income Focus
- The REIT's current-income orientation.
- Illiquidity
- The inability to easily sell a QOF interest.
- Diversification
- Broad exposure a REIT typically provides.
- 90% Asset Test
- A QOF's requirement to hold OZ property.
- Form 8996
- The IRS form by which a QOF self-certifies.
- Suitability Review
- Assessing whether a QOF fits the investor.
Sources & References
- U.S. Securities and Exchange Commission. Investor.gov — Real Estate Investment Trusts (REITs)
- IRS. Opportunity Zones Frequently Asked Questions
- Cornell Legal Information Institute. 26 U.S. Code § 1400Z-2 — Special rules for capital gains invested in 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.
