Business Valuation Appraisal Guides & Insights

QOF Lesser-of Rule: Why Your 2026 Gain Inclusion Needs a Real Appraisal

The QOF lesser-of rule caps your December 31, 2026 gain inclusion at the fair market value of your fund interest minus basis, not the deferred gain itself. This guide explains how that rule works and why it requires a defensible appraisal of an illiquid LP interest, not a guess at NAV.