Trump’s Opportunity Zone program is under investigation

Designed to help poor communities, the tax break has been a win for the wealthy

TRD NATIONAL /
Jan.January 16, 2020 01:30 PM
Donald Trump with Rep. Emanuel Cleaver II, Rep. Ron Kind and Sen. Cory Booker (Credit: Getty Images, iStock)

Donald Trump with Rep. Emanuel Cleaver II, Rep. Ron Kind and Sen. Cory Booker (Credit: Getty Images, iStock)

The Treasury Department is investigating a federal tax break that was designed to help low-income communities, but has proved to be a windfall for the rich.

The inquiry into Trump’s Opportunity Zone program was instigated after three Democratic lawmakers — Sen. Cory Booker, Rep. Emanuel Cleaver II and Rep. Ron Kind — called for it.

The request followed probes by the New York Times and ProPublica, which raised questions about who was benefiting from the program.

Passed in 2017, the tax break was designed to bolster investment in low-income neighborhoods, helping the economy by bringing businesses and jobs. Investors were able to defer capital gains taxes from selling stocks or other investments as long as they put the money into federally designated Opportunity Zones.

But wealthy developers, some of whom have ties to the administration, have sought to benefit. In some cases, funds eligible for the tax break have gone to luxury projects in affluent areas.

Rich Delmar, the Treasury Department’s deputy inspector general, said in a statement that the department’s internal watchdog expects “to complete our work and respond to the congressional requesters in early spring.”

The inquiry was first reported by NBC. [NYT] — Sylvia Varnham O’Regan


Related Articles

arrow_forward_ios
Donald Trump and the Trump National Doral golf course (Getty, Trump Hotels)

In the rough: Trump’s golf clubs and resorts have lost $315M

In the rough: Trump’s golf clubs and resorts have lost $315M
Renderings of the project and Gil Dezer (Getty; Renderings via  Zyscovich Architects)

Dezer’s 30-acre megaproject in North Miami Beach gets first approval

Dezer’s 30-acre megaproject in North Miami Beach gets first approval
Donald Trump (Credit: Win McNamee/Getty Images)

Newly uncovered trademarks show Trump’s Cuba real estate aspirations

Newly uncovered trademarks show Trump’s Cuba real estate aspirations
212 Spyglass Lane & Carlos Gavidia (Realtor, Instagram/Carlos_E_Gavidia)

“Trumptilla” organizer sells waterfront Jupiter home for $6M

“Trumptilla” organizer sells waterfront Jupiter home for $6M
President Trump and Mar-a-Lago Club (Credit: Joe Raedle/Getty Images, and Pete Marovich/Getty Images)

Trump faces $1.5M in Palm Beach County property taxes

Trump faces $1.5M in Palm Beach County property taxes
Rendering of the project, Richard Paul Richman, Deme Mekras and Elliot Shainberg

Richman plans senior housing on Allapattah Opportunity Zone property

Richman plans senior housing on Allapattah Opportunity Zone property
Donald Trump with Trump International Golf Club (Credit: Isaac Brekken/Getty Images and Palm Beach Post)

Trump golf club in West Palm seeks rent relief, citing shutdowns

Trump golf club in West Palm seeks rent relief, citing shutdowns
Jeff Burns, Nick Rojo, The Bohemian Lake Worth

Affiliated Development’s Lake Worth Beach apartment project approved

Affiliated Development’s Lake Worth Beach apartment project approved
arrow_forward_ios

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

Loading...