On this month’s live episode of OZ Office Hours, OpportunityZones.com founder Jimmy Atkinson discusses key dates related to OZ 2.0, plus answers live questions from the audience.
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About The Opportunity Zones Podcast
Hosted by OpportunityZones.com founder Jimmy Atkinson, The Opportunity Zones Podcast features guest interviews from fund managers, advisors, policymakers, tax professionals, and other foremost experts in the Opportunity Zones industry.
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Episode Summary
In the August 2025 edition of Opportunity Zone Office Hours, Jimmy Atkinson answers live viewer questions and provides important updates on Opportunity Zones 2.0, including new timelines, investor considerations, and compliance dates. This session marks the first Office Hours since July’s break and comes one month after the One Big Beautiful Bill Act was signed into law, enacting OZ 2.0 and permanently codifying Opportunity Zones in the tax code.
OZ Insiders Update
Jimmy shares recent happenings within the OZ Insiders mastermind group:
- June Dinner Recap: OZ Insiders gathered at Mangiamo Ristorante in Manhattan Beach, California. Attendees included Blake Christian, who brought magnums of red wine and will be teaching the next masterclass.
- Upcoming Events:
- August 11 Masterclass: Blake Christian will present strategies for minimizing OZ tax liability when deferred gains become includible on 12/31/2026.
- September 4 Dinner: OZ Insiders will convene at the Hotel Drover in Fort Worth, Texas—located in an Opportunity Zone.
- December Dinner: Another in-person networking dinner is planned in Las Vegas.
The group continues to host monthly Zoom calls with group coaching and expert-led masterclasses. Past sessions have included a popular July class with Jim Lang titled “OZ 2.0 Unpacked.”
Timing Rules for OZ 2.0
Jimmy outlines two perspectives on OZ 2.0 timing: investor and QOF.
For Investors:
- Investments made on or before 12/31/2026 fall under OZ 1.0:
- Deferral until 12/31/2026.
- 10-year benefit (step-up to FMV, no depreciation recapture) remains.
- No basis step-up.
- Investments made on or after 1/1/2027 qualify for OZ 2.0:
- 5-year deferral from investment date.
- 10% basis step-up at year 5.
- 30% basis step-up if in a rural OZ or QROF.
- Full 10-year benefits (FMV step-up, no capital gains, no depreciation recapture).
Notably, the date of the original gain doesn’t determine OZ 1.0 vs 2.0—what matters is when the gain is invested into a QOF.
For Qualified Opportunity Funds:
Key dates for QOF compliance and deployment:
- 7/4/2025: Law enacted. Rural 50% substantial improvement threshold is in effect, though IRS guidance is pending on what qualifies as rural.
- Tax Year 2026: New reporting requirements begin, including:
- Number of employees.
- NAICS codes of assets.
- New housing units created.
- 1/1/2027: New OZ 2.0 map takes effect. Dual maps (OZ 1.0 and OZ 2.0) will be in effect until the end of 2028.
- 12/31/2028: OZ 1.0 zones expire.
- 12/31/2036: OZ 2.0 zones expire. A new round of zones begins 1/1/2037.
Jimmy also breaks down the OZ 2.0 designation process:
- 7/1/2026: 90-day determination period begins for states to nominate new OZs (may be extended by 30 days).
- 10/28/2026 (est.): Deadline for state nominations.
- 12/27/2026 (est.): Final OZ 2.0 map published after Treasury review.
Live Q&A Highlights
Michele (Grays Harbor, WA): Asked whether to wait until 1/1/2027 to invest in a known OZ property. Jimmy advises that if gain recognition is flexible, waiting for OZ 2.0 benefits is likely advantageous—but deploying now ensures a longer window to invest in existing zones and locks in today’s capital gains tax rates.
Andrew: Asked if gain must occur 180 days before 1/1/2027 to qualify for OZ 2.0. Jimmy confirms yes for individual gains. However, for gains reported via Schedule K-1, investors can choose from three different start dates for the 180-day window:
- Date of gain.
- 12/31 of the gain year.
- Due date of the entity’s tax return (usually 3/15 of the following year).
This flexibility allows some 2026 gains to be invested in QOFs during 2027 and qualify for OZ 2.0.
Christopher Matysek: Shares a strategy: transfer assets to an LLC before sale to take advantage of K-1 deferral flexibility. Jimmy notes that this is being practiced by some accountants and may offer additional optionality for gain deferral timing.
Phillip: Asked several timing-related questions, including:
- Is 7/1/2026 when OZ 2.0 goes into effect? No—it's the start of the zone determination process.
- Do you need to wait until 1/1/2027 to qualify for OZ 2.0 benefits? Yes.
- If investing on 12/30/2026, does the 10-year benefit still apply? Yes, the 10-year benefit is unaffected and remains in place for all OZ investments regardless of date.
Wistieblower: Asked what happens if a fund invests in OZ 1.0 property before 12/31/2026 and makes substantial improvements before 12/31/2028. Jimmy confirms that so long as the fund remains compliant, investors retain the 10-year benefit—even under the OZ 1.0 program.
Matt: Proposed rolling over gain from an OZ 1.0 investment into an OZ 2.0 fund. Jimmy notes this is currently not allowed under the regulations, but industry advocates are urging Treasury to issue favorable guidance on this point.
Ivan: Triggered a $1 million gain in 2025 and asked whether he could still invest for 10 years and get tax benefits. Jimmy confirms that yes, the 10-year exclusion benefit still applies even under OZ 1.0. Ivan also asked if OZ 2.0 rules would impact his situation—Jimmy explains that the initial deferred gain from 2025 must be recognized in 2026, regardless of future rules.
Cash Flow Distributions: Philip asked if QOF distributions from rent or refinance in excess of basis trigger penalties. Jimmy clarifies that rent is likely treated as ordinary income and taxable accordingly. He invites CPAs to weigh in during future OZ Insiders sessions for more technical guidance.
Private Consultations: Ivan asked whether Jimmy offers one-on-one advice. Jimmy explains that such sessions are reserved for OZ Insiders members, who also get access to his network of CPAs, attorneys, and other OZ professionals.
Closing Remarks
Jimmy wraps by encouraging viewers to:
- Attend the upcoming August 11 Masterclass with Blake Christian.
- Register for the September 4 dinner in Fort Worth.
- Consider joining OZ Insiders at ozinsiders.com to access group coaching, live Q&A, and networking opportunities.
Future masterclasses will include deep dives on OZ 2.0 designations, rural incentives, and new reporting requirements for QOFs.