The upcoming deadline to make a “capital gain rollover” investment into a “qualified opportunity fund” with respect to certain 2020 pass-through gains is September 10, 2021. Most commonly, this deadline applies to capital gains reported on a 2020 Schedule K-1 received from a calendar-year partnership if the partnership itself did not make a rollover election for such gains.
We have become aware that multiple online sources, including many that come up first in an online search, are asserting that the deadline to make these capital gain rollovers is September 11, 2021. This is incorrect, and a purported capital gain rollover of any 2020 gains on this date will fail to be timely. The consequences of a missed deadline can be devastating – the difference between full tax and no tax on exit.
We believe this misinformation spreading on the Internet is attributable to a difference in the counting methodology specified in the statute and regulations vs. what is used by the majority of online date calculator services.
Please contact Argyrios Saccopoulos or Brian Dethrow for all inquiries related to “qualified opportunity funds”:
Senior Counsel, Austin
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