What is the timeframe when investments need to be made into a QOF once it is established?
The investors that want to defer gain recognition have 180 days, including the date of realization to invest in a QOF. Special rules apply in the case of pass-through entities where the 180 will start at the election of the partnership and partners as far as the filing due date for the entity's return.
A QOF may exist for any amount of time prior to receiving investments. IRS Form 8996 allows an election regarding the start date of QOF status, so the entity may be formed and accept its first investment at any time afterward, subject to the regulatory deadline to invest capital gain.
The timeframe for a written plan is within 6 months; for deployment is 31 months.
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