National
Real estate deals dominate Opportunity Zones. Is that bad?
Investment in Opportunity Zones is growing at a rapid pace, and so is skepticism about the program — and...
Opportunity Zones
Opportunity zones are meant to encourage development and job creation in low-income communities. To do this, opportunity zones allow investors who invest unrealized capital gains in opportunity funds to defer paying capital gains income tax on the money until 2026. These funds are then invested into the OZ. If 90% of the investment stays in the zone for ten years, investors can avoid paying the capital gains tax altogether. In New York there are 306 opportunity zones.
Opportunity Zones Q&A
How were opportunity zones created?
Opportunity Zones were created by the Tax Cuts and Jobs Act on December 22, 2017. The first OZs were designated the following April.
How do opportunity zones influence the real estate market?
Intended to spur development in low-income communities, opportunity zones create an incentive for the real estate industry to move more money into underdeveloped areas. In New York, opportunity zones are largely residential. The chance to invest tax-free in a property or development within an opportunity zone is an incentive for many investors.
Who is impacted by opportunity zones?
Investors with real estate interests, or who are looking to increase their real estate interests, may benefit from opportunity zones. Their effect on residents of the zones are more unclear. Although the stated intention of the opportunity zones is to create jobs and increase the quality of living in the zones, some suggest that opportunity zone development causes gentrification and are a giveaway for the rich; others suggest that they are simply not as effective in alleviating poverty as they claim to be; and still more suggest that the long-term effects of opportunity zones are yet to be seen.
Want to know more about opportunity zones?
Check out our Top Stories below for TRD's most up-to-date coverage of opportunity zones.
Opportunity Zones Top Stories
September 9, 2019—CrowdStreet, a real estate crowdfunding firm, launched its own Opportunity Zone fund targeting $20 million.
The Latest
National
At final presidential debate, talk of Opportunity Zones and “little tiny windows”
At Thursday’s presidential debate, there was less interrupting and more real-estate related discussion. The event marked the final faceoff...
Silverback plans 200-unit South Bronx Opportunity Zone project
With a lift from Opportunity Zone financing, Silverback Development is set to build a $90 million, 200-unit development in...
National
Opportunity Zone rule change seeks to entice foreign investors
Potential changes to the rules for Opportunity Zones could soon allow some foreign investors to reap major tax benefits...
National
Fed wants banks to step up lending in low-income areas
The Federal Reserve has proposed modernizing and strengthening a 43-year-old law aimed at encouraging banks to provide loans in...
National
President Trump seeks to move federal agencies into Opportunity Zones
President Donald Trump signed an executive order Monday to push federal agencies to move into Opportunity Zones as he...
National
As president, here’s what Joe Biden would do to Opportunity Zones
Over the last four years, President Trump has dismantled or drastically changed numerous rules and policies put in place...
National
Bridge Investment wants to raise another $600M for its Opportunity Zone funds
Bridge Investment Group said it plans to raise another $600 million through its Opportunity Zone funds between now and...
New York pols take aim at Opportunity Zones
A new bill in Albany would eliminate a state tax break that benefits real estate developers in New York City. The legislation would end New York’s share of the Opportunity Zone tax break for...
Insights
TRD Insights: Little evidence that Opportunity Zone program helps poor communities
The Opportunity Zone program has been a huge success for well-capitalized real estate developers, but not for the disadvantaged...