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How can I invest in a Qualified Opportunity Fund using cryptocurrency?


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  • Matthew Rappaport
    June 01, 2021

    You're allowed to put crypto into an Opportunity Fund, but the logistics are much more complicated than using cash. You will almost certainly run into mixed investment treatment, which is a tax downside, and I'd advise liquidating the crypto before investing it, even if that means your required investment amount for full capital gain deferral increases.

  • David LeGrand
    June 01, 2021

    You would have to find a fund sponsor willing to accept payment in cryptocurrency. They would have to convert it into dollars anyway, so probably easiest for you to convert into dollars. The real question is how are you holding an eligible long term capital gain in cryptocurrency? You only get the tax benefit by rolling over a capital gain.

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