The 2026 “Under Construction” Discount Strategy

Sourced from the OZ 2.0 Resource Center.

Minimizing the Mandatory 2026 Tax Hit

To minimize the mandatory tax hit on deferred gains on December 31, 2026, investors can obtain a Fair Market Value (FMV) opinion on a QOF project that is only partially complete.

How It Works

By applying lack-of-control and lack-of-marketability discounts to the unfinished asset, investors can legally reduce the FMV by 20% to 30%, significantly reducing their taxable inclusion amount.