How FMV Could Affect Your 2026 OZ Tax Bill

How could fair market value affect your 2026 Opportunity Zones tax bill? When an investor defers a capital gain by rolling it into a Qualified Opportunity Fund (QOF), that gain is recognized for tax purposes on December 31, 2026, unless triggered earlier by an inclusion event.

But how much of that gain actually becomes taxable? It all comes down to the fair market value (FMV) of the Opportunity Zone investment on that date.

Real estate attorney Brad Molotsky of Duane Morris joins OpportunityZones.com founder Jimmy Atkinson to unpack the FMV rule, explain how it works, and share practical steps for OZ investors and fund managers to prepare for the 2026 deferral deadline. Topics include:

• How FMV impacts your 2026 tax bill.
• The “lesser of” rule and basis step-ups.
• How to determine FMV the right way.
• What kind of appraisal or valuation will hold up with the IRS.
• Who is responsible—investor or fund?
• Planning strategies for Q4 2025 and beyond.
• What changes under OZ 2.0 in 2027.

Show notes & summary: https://opportunityzones.com/2025/07/...

#opportunityzones #taxdeferral

###

OpportunityZones.com is the world’s leading authority on Opportunity Zone investing. Founded in 2018, our mission is to provide investors and professionals with industry-leading news and information.

OpportunityZones.com produces several popular shows, including OZ NewsHour and The Opportunity Zones Podcast. We also host OZ Pitch Day, the industry’s flagship event series, which has been attended by over 10,000 OZ investors, sponsors, and professionals.

Learn More: https://opportunityzones.com/
Connect With Us On LinkedIn:   / opportunityzonescom