Who benefits from a tax cut for the poor? Goldman Sachs

The financial firm is set to benefit from tax breaks through “opportunity funds”

National /
Aug.August 29, 2018 06:00 PM

(Credit: iStock and Pixabay)

A new tax break meant to benefit low-income areas has opened an opportunity for Goldman Sachs to cash in.

A lesser-known portion of the Republican tax overhaul introduced last year created opportunity funds, which are meant to help 8,700 low-income communities selected by state governors and officials, according to Bloomberg.

Goldman is uniquely positioned to benefit from the tax break, in part because it’s already been funding deals in struggling areas.

The financial firm has reportedly already set up multiple opportunity funds. Recently it created one such fund to invest in projects in Brooklyn and Baltimore. Soon after the tax plan was approved, the bank created another opportunity fund to invest in an affordable housing project in New York’s Jamaica neighborhood and another project to expand a grocery store in a food desert in East Orange, New Jersey.

“We have a big leg up,” Margaret Anadu, the head of Goldman Sachs Urban Investment Group, told the outlet. “This is investing that we’re already doing.”

The opportunity funds also allow firms, including Goldman Sachs, to redirect capital gains, which allows investors to benefit from deferred taxes until 2026, according to the outlet. The move is expected to defer as much as $7.7 billion in taxes by 2022. [Bloomberg] — David Jeans


Related Articles

arrow_forward_ios
(Image by Wolfgang & Hite via Dezeen)
Hudson Yards megadevelopment inspires a new line of sex toys
Hudson Yards megadevelopment inspires a new line of sex toys
Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)
Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Wendy Silverstein (Credit: Getty Images)
Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
Seal Beach’s landmarked water tower house (Compass)
Water tower-turned-home on the Pacific offered for $5M
Water tower-turned-home on the Pacific offered for $5M
The Savoy Hotel in London, UK in 1980 (Getty)
UK hospitality employers could cut half a million jobs
UK hospitality employers could cut half a million jobs
Rapper Iggy Azalea with her new Hidden Hills property (Getty, Sotheby's International Realty)
Iggy Azalea feuds with her new neighbor in Hidden Hills
Iggy Azalea feuds with her new neighbor in Hidden Hills
75 & 81 East Lake Dr. Unit 3 (Mary Lappin Marmorowski/Elliman)
A home on Lake Montauk for just $500K? Here’s why
A home on Lake Montauk for just $500K? Here’s why
Nick Mastroianni II sold the property back to the sellers at a small profit (Google Maps, Nicholas Mastroianni)
Seller’s remorse: Nick Mastroianni returns Jupiter mansion
Seller’s remorse: Nick Mastroianni returns Jupiter mansion
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...