determined as of the date described in paragraph (1), over (ii) the taxpayer’s basis in the investment. (B) Determination of basis qualified rural opportunity zone property (i) In general Except as otherwise provided in this clause or subsection (c), the taxpayer’s basis in the investment shall be zero. (ii) Increase for gain recognized under subsection (a)(1)(b) The basis in the investment shall be increased by the amount of gain recognized by reason of subsection (a)(1)(B) with respect to such property. (iii) Investments held for 5 years In the case of any investment held for at least 5 years, the basis of such investment shall be increased by an amount equal to 10 percent of the amount of gain deferred by reason of subsection (a)(1)(A). (iv) Investments held for 7 years In the case of any investment held by the taxpayer for at least 7 years, in addition to any adjustment made under clause (iii), the basis of such property shall be increased by an amount equal to 5 percent of the amount of gain deferred by reason of subsection (a)(1)(A). (c) Special rule for investments held for at least 10 years In the case of any investment held by the taxpayer for at least 10 years and with respect to which the taxpayer makes an election under this subsection, the basis of such property shall be equal to the fair market value of such investment on the date that the investment is sold or exchanged. (d) Qualified rural opportunity fund For purposes of this section— (1) In general The term qualified rural opportunity fund means any investment vehicle which is organized as a corporation or a partnership for the purpose of investing in qualified rural opportunity zone property (other than another qualified rural opportunity fund) that holds at least 90 percent of its assets in qualified rural opportunity zone property, determined by the average of the percentage of qualified rural opportunity zone property held in the fund as measured— (A) on the last day of the first 6-month period of the taxable year of the fund, and (B) on