Qualified opportunity zone funds are proving to be an attractive alternative to a 1031 exchange, and they have already averted demand away from 1031 deals. It makes sense: 1031 exchanges and qualified opportunity zone funds have similar benefits, promising investors can avoid capital gains taxes made on an investment property; however, opportunity zone funds cover both commercial and residential investments. “I think they have already,” Phil Jelsma, partner and chair of the tax practice team at Crosbie Gliner Schiffman Southard & Swanson, tells GlobeSt.com when asked if qualified opportunity zone funds are taking demand from 1031 exchange deals. “Not surprisingly more and more clients are asking for a comparison of the benefits of investing in opportunity zones as opposed to a Section 1031 Exchange, which allows investors to defer capital gains taxes on the sale of certain investment properties.”