There are three primary benefits, but one is clearly more important than the others:
1. Capital Gains Tax Elimination. Pay $0 on capital gains earned by the QOF if your investment is held in the Fund for 10+ years.
2. Defer Capital Gains Taxes. Defer your capital gains tax from a previous investment until 2026.
3. Capital Gains Tax Reduction. Reduce your capital gains taxes by up to 15%.
Real Estate historically has good appreciation rates, whether due to market conditions or inflation. Real estate has been a good investment vehicle and investment in Qualified Opportunity Funds only increases these benefits.