One-page comparison of QSBS, Opportunity Zones, and 1031 Exchanges

When it comes to deferring or eliminating capital gains tax, most investors default to the one tool they know: the 1031 exchange.

But after the passage of the One Big Beautiful Bill Act (OBBBA), two other strategies—Qualified Small Business Stock (QSBS) and Opportunity Zones (OZs)—offer more flexibility, broader applicability, and in some cases, full tax elimination instead of mere deferral.

Each tool comes with different requirements, timelines, and asset eligibility, so the key is understanding how they fit into your investment strategy and exit plans.

Comparison of QSBS, Opportunity Zones, and 1031 Exchanges, structured for clarity:

QSBS, OZs, and 1031 exchanges all offer significant tax advantages, but they serve different roles in your overall planning.

• QSBS is ideal for founders and early investors in C-Corps planning an equity exit.

• OZs are a powerful vehicle for deferring and eliminating gains from any appreciated asset—especially for long-term, passive investors.

• 1031s remain useful for real estate-specific deferral strategies but lack the flexibility and finality of the other two.

The smartest investors aren’t just choosing one—they’re building structures that combine these strategies to reduce exposure, increase after-tax yield, and position their portfolios for long-term efficiency.