What is a Qualified Opportunity Zone?
Designated by the government to drive investment
Qualified Opportunity Zones (QOZS) are economically distressed communities designated by U.S. states and certified by the Treasury Department under the Tax Cuts and Jobs Act of 2017. Investing in these zones through a Qualified Opportunity Fund (QOF) unlocks a trio of powerful tax incentives-making them one of the most compelling vehicles for capital gains reinvestment available today.
There are over 8,700 QOZ census tracts across all 50 states, D.C., and U.S.
territories-spanning urban neighborhoods, suburban corridors, and rural communities.
Designated census tracts certified under the Tax Cuts and Jobs Act of 2017
8,700+
Opportunity Zone census tracts nationwide Investments are made through a Qualified Opportunity Fund (QOF), a special-purpose vehicle that deploys capital into QOZ projects-real estate, businesses, or infrastructure.
0%
Federal capital gains tax on 10-year gain
Key Tax Benefits
1: Defer your capital gains tax
Reinvest capital gains from a sale-stocks, real estate, business, or other assets - into a QOF within 180 days. Your original gain is deferred from taxation until December 31, 2026 (or when you exit the fund, whichever comes first), giving you years of tax-free compounding on capital you would have otherwise paid to the IRS.
2:Potential Elimination of Federal Capital Gain Tax
The longer you hold your QOF investment, the more of your original deferred gain is forgiven. After 5 years, you receive a 10% step-up in basis on the deferred gain. This reduction in taxable income is a direct, permanent reduction of what you owe - not just a delay.
10% reduction at 5 years
3: Tax-free appreciation on new gains
This is the crown jewel: hold your QOF investment for at least 10 years, and all appreciation on the new investment-every dollar of growth your capital generates inside the fund is completely exempt from federal capital gains tax. No tax at all on a decade of compounding growth.
0% tax on gains after 10 years
Key Benefits of OZ Investing
Capital gains deferral
Reinvesting gains into a QOF puts the tax clock on pause, keeping your capital working for you rather than flowing to the IRS.
Diversification into real assets
OZ funds typically invest in tangible real estate and infrastructure projects providing inflation, resistant, hard-asset exposure outside of equity markets.
Permanent gain reduction
The step-up in basis provision permanently eliminates a portion of the deferred tax liability- money you never have to pay back.
Diversification into real assets
OZ funds typically invest in tangible real estate and infrastructure projects providing inflation, resistant, hard asset exposure outside of equity markets.
Tax-free appreciation
A decade of real estate or business growth inside a QOF generates zero federal capital gains tax-among the most favorable long-
term investment structures. available.
Community Impact
OZ funds typically invest in tangible real estate and infrastructure projects providing inflation, resistant, hard asset exposure outside of equity markets.
Why doctors should consider OZ investing
Physicians face some of the highest effective tax burdens of any professional group - top marginal rates, the 3.8% net investment income tax, and substantial capital gains from practice sales or equity portfolios. Opportunity Zones offer a purpose- built shield.
Shield capital gains from a practice sale
When a physician sells an ownership stake in a medical practice, real estate, or a hospital system, the resulting gain can be seven or eight figures. Rolling that gain into a QOF within 180 days defers the entire tax hit while keeping capital compounding.
Protect investment portfolio gains
When a physician sells an ownership stake in a medical practice, real estate, or a hospital system, the resulting gain can be seven or eight figures. Rolling that gain into a QOF within 180 days defers the entire tax hit while keeping capital compounding.
Escape the 3.8% surtax on QOF exit
After a 10-year hold, the appreciation inside a QOF is excluded from the 3.8% net investment income tax (NIIT) a significant savings for high-income earners who routinely hit this threshold.
Estate planning advantages
QOF investments can be structured to step up in basis at death, potentially eliminating the deferred gain entirely and transferring the asset to heirs free of capital gains - a powerful wealth- transfer strategy for physicians building multi-generational wealth.
ILLUSTRATIVE SCENARIO
A physician sells a partnership Interest in a specialty practice for $3M, realizing a $2M capital gain. Instead of paying roughly $476,000 in federal taxes (at 23.8%), they roll the $2M into a QOF. Over 10 years, the fund grows that $2M into $4.2M. At exit, the original deferredis, and the $2.2M in new appreciation is entirely tax-free-saving ov tax is settled on the adjusted baser $500,000 in additional federal taxes on the growth alone.
The team behind your investment
OZDG has established itself as a leading OZ advisory and development firm, with over 100 years of combined real estate experience and a proven track record across hundreds of transactions.
Graham Allison
Founder & CEO
20+ years of experience in real estate and economic development
Has a proven track record of identifying and securing lucrative investment opportunities
Specializes in “deck stacking,” a strategic approach to layering government subsidies and incentives to maximize returns for investors
Michael Schiff, Esq.
Principal
President and CEO of Schiff Capital Group
A seasoned real estate developer dedicated to urban revitalization in Columbus
Leveraging 25 years of experience, his portfolio boasts notable projects like Hubbard Park Place and the revitalization of The Atlas Building, showcasing his commitment to transforming key urban areas
Schiff Capital Group specializes in a diverse range of real estate activities, from mixed-use and multi-family developments to commercial and medical properties
Our Track Record
100+
YEARS OF RE EXPERIENCE
200+
INVESTORS ADVISED
$100M+
INCENTIVES IDENTIFIED
$4B+
COMPLETED PROJECTS