What’s the process for a married couple who earns capital gains, can one of the spouses invest the whole gain separately or do they need to invest in a QOF together?

Answers

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  Marko Belej

  Taft

  September 09, 2021

  The regulations aren't entirely clear whether, in the case of gain recognized by a married couple, just one spouse can invest the gain in a Qualified Opportunity Fund (QOF). The regulations do provide that a transfer of a QOF interest from a person to his spouse is an inclusion event, which indicates that gains might not be interchangeable among spouses. We have advised that, to be on the safe side, if a particular spouse or a married couple jointly recognizes gain, then that spouse or the couple, respectively, should make the investment in the QOF.

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  Matthew Rappaport

  Falcon Rappaport & Berkman

  September 10, 2021

  In separate property states, the question is whether the asset sold was in the name of one or both spouses. In community property states, consult a community property expert.

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