Unfortunately, the termination of your qualified opportunity fund (QOF) generally will be an inclusion event with respect to your interest in the QOF (unless your QOF terminates as the result of a merger with another QOF).
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What happens with my gains if I terminate my Qualified Opportunity Fund?
Is there any way to avoid an inclusion event by reinvesting in another QOF or QOZB?
Answers
If you voluntarily terminate your QOF election in good faith and liquidate the entity, you should be able to reinvest in another QOF within the prescribed time periods under the statute, but your 10-year timer will restart, and any five- or seven-year benefit will surely be lost.
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