THE ULTIMATE TAX BREAK
investors who plow a 2018 capital gain into an opportunity fund get three tax breaks: deferral of tax on their 2018 gain until 2026; a 15% reduction on those gains when they are taxed in 2026; and tax-free growth of their opportunity investment, as long as they hold it for at least ten years. results for residents of new york City, who can save state and local taxes by investing in an o-fund, are shown in blue, while those for residents of texas (one of the seven states without a state income tax) are in red. note: not all states with income taxes will match the o-fund break. taxes for 2028 are calculated with the assumption that the trump tax changes will be extended.