Some high-earning investors will soon owe taxes on years of deferred capital gains

Investors in Opportunity Zones must recognize deferred capital gains by December 31, 2026, according to federal tax law. Opportunity Zones, established in 2017, allowed investors to defer taxes on capital gains reinvested in designated economically distressed areas. The deferral period for gains generated before 2026 expires at the end of this year, requiring investors to report and pay taxes on those gains.

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