CREI Partners

Real Estate Investments

Building Passive Income

Episode 18: Qualified Opportunity Zones (QOZs) – Eliminating Capital Gains Taxes

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Building Passive Income
Building Passive Income
Episode 18: Qualified Opportunity Zones (QOZs) - Eliminating Capital Gains Taxes
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Welcome to Building Passive Income with CREI Collin

What if you could eliminate capital gains taxes entirely? In this solo episode, CREI Collin breaks down Qualified Opportunity Zones (QOZs)—the powerful tax incentive that allows you to defer, reduce, and potentially eliminate capital gains by investing in designated economically distressed communities. Learn the strict timelines, hold period requirements, and strategic considerations for this advanced tax strategy.

What You’ll Learn:

  • What Qualified Opportunity Zones (QOZs) are and how they were created
  • The three tax benefits: deferral, reduction, and elimination of capital gains
  • The strict 180-day investment timeline after realizing a gain
  • How the 10-year hold period unlocks tax-free appreciation
  • The 5-year and 7-year step-up bonuses (and why they matter)
  • How to invest in QOZs through Qualified Opportunity Funds (QOFs)
  • Common QOZ mistakes and pitfalls
  • Strategic considerations: When QOZs make sense (and when they don’t)
  • How QOZs compare to 1031 Exchanges

Important Timestamps:

  • [0:00] Introduction: The most powerful tax incentive you’ve never heard of
  • [1:30] What are Qualified Opportunity Zones?
  • [3:00] The Three Tax Benefits: Deferral, Reduction, Elimination
  • [5:00] The 180-Day Timeline: When the clock starts
  • [6:30] The 10-Year Hold Period: How to eliminate capital gains entirely
  • [8:00] The 5-Year and 7-Year Step-Up Bonuses
  • [9:30] How to Invest: Qualified Opportunity Funds (QOFs)
  • [11:00] Common QOZ Mistakes (and how to avoid them)
  • [13:00] Strategic Considerations: When QOZs Make Sense
  • [14:30] QOZs vs. 1031 Exchanges: Key Differences
  • [16:00] Recap and Action Steps

Key Takeaways: ✅ QOZs allow you to defer, reduce, and eliminate capital gains taxes

✅ You have 180 days from realizing a gain to invest in a QOF

✅ Hold for 10 years to eliminate all taxes on appreciation

✅ 5-year hold = 10% step-up; 7-year hold = 15% step-up (on original gain)

✅ QOZs are high-risk, high-reward investments in economically distressed areas

✅ Not for everyone—requires long hold period and tolerance for risk

✅ Always consult your CPA and attorney before investing in QOZs

Resources Mentioned:

Disclaimer: This podcast is for educational purposes only and does not constitute tax, legal, or investment advice. Always consult with your CPA, attorney, and financial advisor before making any investment or tax decisions.

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Ready to Explore Advanced Tax Strategies? Let’s discuss whether QOZs fit into your investment plan. Schedule your free 30-minute consultation: Let’s Talk