Crypto Investors

Crypto investors can benefit significantly from Opportunity Zone investing by turning volatile gains into long-term, tax-advantaged wealth. Capital gains from the sale of cryptocurrency – whether short-term or long-term – can be rolled into a Qualified Opportunity Fund (QOF) within 180 days, allowing investors to defer taxes on those gains until 2027. Even more compelling, if the Opportunity Zone investment is held for at least 10 years, any appreciation on that new investment can be excluded from capital gains tax entirely.

This strategy allows crypto investors to reduce immediate tax liability while reallocating into more stable, growth-oriented assets such as real estate or operating businesses in emerging markets, providing both diversification and a powerful long-term tax advantage.

The Challenge

Crypto investors realizing significant short-term or long-term gains often face substantial capital gains taxes and portfolio volatility.Opportunity Zones allow these investors to lock in profits while diversifying into more stable, real assets.

Why It Resonates

Opportunity Zones allow investors to defer capital gains taxes by reinvesting eligible crypto gains into tax-advantaged real estate, offering diversification away from digital assets without forcing immediate tax recognition.

The Result

Investors can reduce near-term tax exposure, diversify into income-producing real estate, and potentially achieve tax-free appreciation over the long term while reducing overall portfolio risk.

About the Opportunity Zone Program

Qualified Opportunity Zones (OZ) were created as part of the Tax Cuts and Jobs Act of 2017.

These zones were designed to spur economic development and job creation in communities throughout
the country by providing tax benefits to investors with eligible capital gains.

The OZ program incentivizes long-term investment to revitalize underserved, often underdeveloped
communities across the U.S.

Eligible Gains

Investors have 180 days from the day the capital gains event occurs to invest into a Qualified Opportunity Zone Fund.

Opportunity Zone Program Tax Benefits

Jeff Feinstein, Managing Partner of Pinnacle Partners, Jill Homan, Managing Director of Pinnacle Partners, and Brendan McAuliffe, CPA, Partner at BMMS Partners, PLLC, discuss the tax benefits associated with the current OZ Program (aka OZ 1.0) and make a compelling argument for why OZ 1.0 remains a strong tax deferral strategy for investors.

Download Our OZ Case Study For Crypto Investors

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What Sets Pinnacle Partners Apart

Pinnacle Partners is an SEC-Registered Investment Advisor (RIA) focused on tax advantaged private real estate investment opportunities; specifically, through Qualified Opportunity Zones and workforce housing developments, in partnership with 50+ RIAs and hundreds of individual investors. Pinnacle has capitalized over $1B in multifamily development projects, including more than 2,400 units of multifamily housing, and sources off-market opportunities with best-in-class development partners.

Wondering how to manage gains and volatility tax-efficiently? Let’s talk strategy!

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Wondering how to manage gains and volatility tax-efficiently? Let’s talk strategy!

Schedule a call with our team to get you started.

Blake Backer
Principal & Vice President,
Investor Relations
Western Region
blake@pinnacleoz.com
425.736.7084

John “JB” Menefee, CFA
Director of Investor Relations
Eastern Region
john@pinnacleoz.com
541.610.5671