2025 Capital Gains May Still Be Eligible for Tax Deferral
If you realized a capital gain in 2025, it may not be too late to defer it.
Qualified Opportunity Fund rules may still allow certain 2025 gains to be deferred, even if a tax return has already been filed. Depending on the type of gain and when it was realized, the eligibility window may remain open into 2026. Download the guide for important timing, eligibility, and deferral considerations.
What Type of 2025 Capital Gains Can Still Be Deferred in 2026?
Opportunity Zone eligibility comes down to the type of gain and what type of entity it came through, if any. For capital gains realized directly, such as from the sale of appreciated stock in a brokerage account, the 180-day window will always start on the date the gain is realized.
However, for many capital gains, the OZ eligibility window can be much more accommodating. Capital gains benefiting from extended eligibility include those coming from:
- PartnershipsÂ
- S-CorporationsÂ
- Mutual funds
- Some trusts
- The sale of business assets
- Installment salesÂ
Why It Matters
The ability to defer when a gain is recognized not only keeps your money working for you longer, but it also creates tax planning flexibility around tax brackets, Medicare surcharges, Social Security taxation, Roth conversions, and other income-based and benefit-based considerations.
Key Questions to Ask
When did the gain occur? What were the circumstances? How was it owned, directly or through an entity like a partnership? The answers determine whether the 180-day QOF deferral eligibility window is still open.
These pages are prepared for informational purposes only and are not offered as legal, tax, or investment advice. All content provided is of a general nature and does not address the particular circumstance of any particular individual or entity. We encourage you to seek guidance regarding your individual financial needs from legal, tax or investment professionals. Investments, including our shares of stock, have inherent risks including the risk of principal loss.
These pages are prepared for informational purposes only and are not offered as legal, tax, or investment advice. All content provided is of a general nature and does not address the particular circumstance of any particular individual or entity. We encourage you to seek guidance regarding your individual financial needs from legal, tax or investment professionals. Investments, including our shares of stock, have inherent risks including the risk of principal loss.