Qualified Opportunity Zone investments sanity check

Technical topics regarding tax preparation.
#1
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10-Apr-2019 4:35pm
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WA
Client formed a QOF in 2021 and invested eligible gains.

For 2022, the client would like to make additional investments to the QOF because he wants the QOF to invest in other QOZs that interest him. Two questions:

Can the client invest additional non-capital gain funds into the QOF?

If the question above is "Yes", is there any point in doing so? I understand that they would not be deferring any capital gains, but is there any permanent tax exclusion on the appreciation if held for more than ten years? It seems that they don't get a benefit of the latter, and it's only on the capital gain portion.
 

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