Qualified Opportunity Fund Valuation Services
QOF fair market value valuation services of prepared in accordance with USPAP and Rev. Rul. 59-60. Our valuations account for minority interest discounts, marketability constraints, and the December 31, 2026 inclusion event — built for tax filings, financial reporting, and audit defense.
- USPAP-compliant fair market value methodology
- DLOC and DLOM analysis for LP interests
- IRC 1400Z-2 deferred gain inclusion planning
OPPORTUNITY ZONE PROGRAM
Qualified Opportunity Zones Carry Complex Tax Rules That Often Require a Professional Valuation
Qualified Opportunity Zones (QOZs) were created under the Tax Cuts and Jobs Act of 2017 to encourage long-term investment in designated low-income communities. Investors defer capital gains by reinvesting them into a Qualified Opportunity Fund (QOF), a partnership or corporation organized to hold at least 90% of its assets in qualifying opportunity zone property. In exchange, investors receive an LP or equity interest in the fund and the ability to defer, and potentially reduce, tax on the original capital gain under IRC 1400Z-2.
A valuation becomes necessary at several points in a QOF's life cycle. Investors who held their interest before December 31, 2019 face a mandatory inclusion event on December 31, 2026, when the deferred gain must be recognized regardless of whether the interest has been sold, and an accurate fair market value is required to calculate that gain correctly. Valuations are also called for when a fund reports to auditors or investors, when an LP interest is sold, gifted, or transferred, when a dispute arises among partners over capital account value, or when a fund undergoes a partial or full dissolution. Because QOF interests are illiquid and often held by a small group of investors, a defensible, USPAP-compliant valuation gives funds, LPs, and their CPAs or tax attorneys a documented basis for these events rather than an informal estimate.
QOF Valuation Group offers appraisals on QOF interests for funds, investors, LPs, and General Partners
We prepare fair market value valuations of qualified opportunity fund interests for tax reporting, financial planning, and compliance. Our valuations account for minority interest discounts, lack of marketability, and the IRC 1400Z-2 inclusion event timeline.
QOF Interest Valuation
Fair market value determination of LP interests in qualified opportunity funds, prepared in accordance with USPAP and Rev. Rul. 59-60 methodology. Suitable for tax reporting, financial statements, and investor planning.
Minority Interest & DLOM Analysis
Discount for lack of control and discount for lack of marketability analysis specific to illiquid QOF LP interests. Supports defensible valuations for tax compliance and investor communications.
IRC 1400Z-2 Compliance Valuation
Valuations prepared to address the December 31, 2026 inclusion event and deferred gain reporting requirements. Establishes fair market value baseline for tax planning and statutory compliance.
Fund-Level & Portfolio Valuation
Valuation of underlying fund assets and multi-asset QOF portfolios. Provides transparency for financial reporting, investor statements, and fund management decision-making.
Get Your QOF Valuation
Our team prepares fair market value valuations of qualified opportunity fund interests for tax reporting, financial planning, and compliance. Built to professional standards and defensible under IRS scrutiny.
FAQ
Frequently Asked Questions
What is a QOF valuation, and why do I need one?
A QOF valuation is a fair market value determination of your interest in a qualified opportunity fund. You need one to establish the basis of your LP interest for tax reporting, to satisfy IRS requirements around the December 31, 2026 inclusion event under IRC 1400Z-2, and to support your tax filings with your CPA or tax attorney. Our valuations are prepared in accordance with USPAP and Rev. Rul. 59-60 methodology, so they withstand scrutiny.
How is fair market value of an LP interest determined?
Fair market value reflects what a willing buyer would pay a willing seller, neither under pressure to buy or sell. For LP interests, we apply standard valuation methodologies including income and market approaches, and we account for minority-interest discounts (DLOM and DLOC) where applicable. The valuation reflects the fund's underlying assets, performance, and the investor's ownership stake and control rights.
What credentials do your valuers hold?
Our team holds credentials with leading organizations such as the ASA, NACVA, AICPA (ABV), and CFA. Every valuation is prepared in accordance with USPAP and professional appraisal standards. We do not represent that any single valuer holds every credential; our work is fulfilled by a credentialed team with deep expertise in business valuation and LP-interest analysis.
What is the December 31, 2026 inclusion event, and how does it affect my QOF investment?
Under IRC 1400Z-2, if you invested in a QOF before December 31, 2019, you have the option to include your deferred gain in income on or before December 31, 2026. A current fair market value of your QOF interest is essential to calculate the deferred gain accurately and to make an informed decision about whether to elect inclusion. We prepare valuations specifically to support this analysis.
Can you value a minority or non-controlling LP interest?
Yes. Minority LP interests are valued with appropriate discounts for lack of control (DLOC) and lack of marketability (DLOM). These discounts reflect the limited influence and liquidity constraints inherent in a non-controlling position. Our methodology is grounded in Rev. Rul. 59-60 and recognized valuation standards.
What information do you need from me to prepare a valuation?
We typically request the fund's most recent audited financial statements or K-1, your LP agreement or subscription documents, the fund's investment policy and performance history, and your ownership percentage and capital account balance. We may also request distributions received and any side letters or amendments affecting your interest. We'll provide a detailed request list when you engage us.