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If an investor has both gross gains and capital losses in a given year, is it still possible for them to invest in a QOZ fund? 

Yes. If an investor has a net capital loss in a year that’s made up of a gross loss that outweighs a gross capital gain, the investor can still choose to defer the gross gain by investing it in a QOZ fund. They can choose to either let the capital loss offset the gain or defer some or all of the gain via an eligible QOZ investment. If the investor chooses the latter, they could then carry the remaining net loss forward to the subsequent tax year.