Differences Between 1031 Exchanges and QOZ Fund Deferrals
1031 Exchanges
- Limited to Real Property
- For full deferral must invest all proceeds
- Carry-over basis of prior investment
- 45 Day identification period
- Limited Ability to Identify
1400Z Deferrals
- Gain from any Source
- Investment into QOZ Fund [Business or Real Estate]
- No Basis in Investment
- No Identification Period
- Partial Gain Elimination [10% -5 yr. 15%-7 yr.
- Basis Step-up to FMV in 10 yrs.