The IRS and the Treasury Department recently released a second set of proposed regulations on the federal Opportunity Zone program, which was created by the 2017 tax law to spur investment in economically distressed census tracts. The Opportunity Zone law provides significant long-term tax benefits for investors who put capital gains into Qualified Opportunity Funds, investment vehicles set up to deploy funds into eligible property and businesses in designated Opportunity Zones. Most Opportunity Zones are in majority black and brown neighborhoods, giving rise to concerns about risks of gentrification and displacement of low-income families from their neighborhoods if the program does not adequately protect the interests of existing residents. Some worry that struggling communities will continue to be left behind, while outside investors enjoy the rewards of Opportunity Zone tax preferences. As this debate plays out, those concerned about ensuring the democratization of the benefits to … [Read more...] about Making Opportunity Zones Work for Black Communities
Opportunity zone investments
Capital & Main is an award-winning publication that reports from California on economic, political, and social issues. New York City investor Morris Pearl made a tidy $47,000 by selling Facebook stock this year. Then, looking for ways to reinvest his capital gains and diversify his portfolio, he learned about a real estate deal he couldn’t pass up. What caught his attention was not so much the fundamentals of the mixed-use project near downtown Los Angeles. Rather, it was what he described as the “ridiculous loophole” that would allow him to forgo paying a capital gains tax on his Facebook stock sale for as many as 10 years and avoid paying any taxes on what he earned from the $50,000 in total he planned to invest in the deal. That “ridiculous loophole” is otherwise known as the opportunity zone program, a part of the federal 2017 Tax Cut and Jobs Act that received bipartisan support because it incentivizes the private sector to invest in … [Read more...] about Are ‘Opportunity Zone’ tax breaks too good to be true?
Sections SEARCH Skip to content Skip to site index Your Money Log In Subscribe Log In Today’s Paper Your Money | Is an Opportunity Zone the Right Investment for You? Advertisement Supported by Wealth Matters ByPaul Sullivan May 17, 2019 The hottest pitch in real estate is the opportunity zone, one of 8,700 geographic areas in the United States in need of economic investment. Opportunity zones encompass three enticements that make real estate attractive to professional investors: the promise of change in underserved areas, the chance of an outsize investment return and the opportunity for a huge tax break. But confusion arose over how to invest in the opportunity zones, which were designated in the 2017 tax overhaul. Guidance from the Treasury Department, released last month, helped clarify how investments in these zones would work. It also acted as a green light for managers raising money for funds to … [Read more...] about Is an Opportunity Zone the Right Investment for You?
By Richard Rubin WSJ Wed., April 17, 2019 WASHINGTON—The Treasury Department is releasing a new round of regulations for tax-favored investments in low-income areas—aiming to clarify definitions for investors who are seeking to use the tax break, but wary of moving forward without clear rules. The new rules for the opportunity-zone program, described Wednesday by Treasury officials, should make it easier for fund managers to raise money and for developers to begin construction. Investors have been eagerly awaiting the regulations, particularly because the maximum tax benefits from putting money into opportunity zones are available through the end of 2019. The regulations could inject a new round of energy and money into the program as investors search for funds to take their money before Dec. 31. Congress created opportunity zones in the 2017 tax law, and the incentive works by attracting private investment into specified low-income areas. Under the … [Read more...] about Trump Administration Offers New Flexibility in Opportunity Zones
By R.A. Schuetz Published 1:38 pm CDT, Thursday, April 4, 2019 One of the first three homes built in Eastwood was listed for $825,000, a record for the neighborhood. Home values are quickly rising in the neighborhood that has been designated an Opportunity Zone. One of the first three homes built in Eastwood was listed for $825,000, a record for the neighborhood. Home values are quickly rising in the neighborhood that has been designated an Opportunity Zone. Photo: TK Images Photo: TK Images Image 1 of / 1 Caption Close Image 1 of 1 One of the first three homes built in Eastwood was listed for $825,000, a record for the neighborhood. Home values are quickly rising in the neighborhood that has been designated an Opportunity Zone. One of the first three homes built in Eastwood … [Read more...] about Houston’s Opportunity Zones among nation’s most appealing for investors