Tax Benefits of Investing in a Qualified Opportunity Fund (QOF)
Deferral: A temporary tax deferral for capital gains reinvested in a QOF fund until December 31, 2026, or the date on which the opportunity fund investment is sold, whichever is earlier.
Reduction: If the capital gains are reinvested in a QOF by December 31, 2021, the deferred taxes owed for 2026 are reduced by 10%.
To have received the full 15% step up basis, you would have had to made the investment in QOF by December 31, 2019
Elimination: An elimination of capital gains tax for capital gains generated by the investment if the investment is held for at least 10 years. (Note: this exclusion applies only to the gains accrued from the investment in a Qualified Opportunity Fund, not the original gains)