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Still Holding Capital Gains from 2024? Here’s a Smarter Way to Reinvest Tax-Efficiently

  • Jun 14
  • 2 min read

If you’ve realized a capital gain in 2024—whether from the sale of real estate, a business exit, or appreciated stock—there’s still time to act. Two well-established strategies can help you defer taxes and preserve more capital:


Qualified Opportunity Zone (QOZ) investments and 1031 exchanges.


What Is an Opportunity Zone Strategy?


The Qualified Opportunity Zone program allows investors to reinvest eligible gains into designated Opportunity Zones. If done within the required time window, this strategy offers:


● Capital gains tax deferral until December 31, 2026*

● No tax on the growth of the new investment, if held long term

● No depreciation recapture—a key advantage over traditional real estate reinvestments

● Flexible timing for K-1 gains (from partnerships or LLCs), with extended deadlines**


Key Deadlines in 2025


● For most 2024 capital gains, the 180-day reinvestment window ends on June 30, 2025

● For K-1 gains, investors may elect to start the 180-day clock on March 15, 2025, extending the deadline to September 11, 2025


These deadlines are critical to ensuring eligibility for the tax benefits outlined above. At MyTimeEquity, we help investors structure these transactions based on the source, timing, and nature of the gain.


What About 1031 Exchanges?


For clients with real estate gains looking to maintain real estate exposure and generate stable income, a 1031 exchange may be more appropriate.


A 1031 exchange allows you to reinvest proceeds from the sale of investment property into a like-kind property—deferring capital gains taxes in the process. We offer a curated selection of DST (Delaware Statutory Trust) investment options that qualify under Section 1031 and are suited to passive investors seeking predictable income.


How We Can Help


Choosing between a QOZ and 1031 strategy depends on several factors—your tax profile, liquidity needs, income objectives, and long-term estate planning considerations. Our team can help you:


● Understand eligibility and timing

● Select suitable investment vehicles

● Structure your reinvestment strategy efficiently and compliantly



 
 
 

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Disclosure

The information provided on this website is for informational purposes only and does not constitute financial, legal, or tax advice. Consult with a qualified financial advisor, attorney, or tax professional before making any financial decisions. The information does not constitute an offer to sell or a solicitation of an offer to buy securities issued by the MyTimeEquity Private Equity (MPE) LLC. Any such offer or solicitation will be made exclusively through the Fund’s Confidential Private Placement Memorandum. Investors should carefully review these documents before making an investment decision. MyTimeEquity, LLC, a Texas limited liability company formed on September 3, 2021, serves as the investment adviser to MPE with respect to its securities investment activities. The Adviser is registered as an investment adviser with California, Florida, North Carolina, and Texas. The MPE Digital Asset (MDA) Fund’s investment strategy is speculative and involves substantial risks. The MDA Fund has a limited operating history, and there is no guarantee that it will achieve its investment objectives. Investors may lose some or all of their invested capital. Additionally, investments in the Fund will be illiquid (initial 12 months). The MDA Fund is not intended as a complete investment solution and is suitable only for investors who can tolerate an indefinite commitment of capital and withstand the potential total loss of their investment. Bitcoin and other digital assets present a high degree of risk and their past performance does not guarantee future results. Cryptocurrencies are not legal tender and are not backed by any government or central authority. The market for digital assets has historically been highly volatile, and the value of cryptocurrencies held by the Fund could decline significantly, including to zero. Government regulations and restrictions on cryptocurrency transactions are evolving and may materially impact the Fund’s ability to operate. Cryptocurrency exchanges are also subject to fraud, cyberattacks, operational failures, and regulatory actions, any of which could result in losses. Similar to traditional assets, digital assets are vulnerable to theft, loss, and destruction. Incidents of hacking and fraud have resulted in significant losses across the industry, and the Fund’s assets are not immune to such risks. For additional details regarding the risks associated with investing in the Fund, please connect with us and refer to the MDA Fund’s Confidential Private Placement Memorandum.

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