All capital gains (even from bitcoin) can be deferred by investing within 180 days of recognizing the gain. Be sure the opportunity zone fund is legitimate, and has been organized under all the rules under code section 1400(z).
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How can I defer bitcoin capital gains through a purchase of real estate in a Qualified Opportunity Zone?
How can I defer bitcoin capital gains through a purchase of real estate in a Qualified Opportunity Zone? Are there any capital gains that are excluded from being deferred through the OZ program?
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Same way as any other federally recognized capital gain. Don’t differentiate. Yes, capital gains that are not under the “federal” guidelines, most of what you’re likely dealing with fall into the appropriate category.
Provided you are holding the Bitcoin as an investment rather than inventory, you should generate either a capital gain or Section 1231 gain and be eligible for OZ program deferral. You will just need to establish a Qualified Opportunity Zone Fund (QOF) within 180 days from the date of recognizing the gain and fund the QOF with cash and/or property. Then you can follow the QOF rules and defer your gain and become eligible for the various permanent tax savings at years 5, 7 and 10.
By doing just that: using the proceeds (fully or in part) for a new investment.
You have 180 days from each sale of bitcoin to invest the capital gains into real estate located in an Opportunity Zone indirectly through a QOF or directly into an Opportunity Zone, so long as various statutory and regulatory requirements are satisfied.
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