Opportunity Zones vs. 1031 Exchanges for Capital Gains Tax Deferral

Since Opportunity Zones offer an incredible opportunity for eligible investors to defer their capital gains until 2027, as well as to avoid any capital gains on any appreciation in their Opportunity Fund investment (given that it’s held at least 10 years), it’s often compared to another capital gains tax deferral mechanism, the 1031 exchange. While 1031 exchanges have many similarities to Opportunity Fund investments, they also have quite a few major differences.