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, can the investor still choose to defer the gross gain by investing it in a QOZ fund?

Yes. If an investor has both gross gains and capital losses, the investor can choose to either let the capital loss offset the gain, or to 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.