Opportunity Zone Program Turns Blight Sites into Tax Havens for Asset-Rich Investors
The Internal Revenue Service and U.S. Department of Treasury will be responsible for monitoring the new Opportunity Zone Program established by the Tax Cuts and Jobs Act. Real Estate Weekly's coverage featured insight from Partner Stuart Saft, who stated that enthusiasm for the program is curbed by the fact that these agencies have yet to establish regulatory policies to sort out the finer details–such as where the zones will actually be located.
"The question is one of enforcement and it comes down to what impact the enforcement has on the investors," said Mr. Saft.
"If you sold something and you're sitting there with a large capital gain and you're told that an investment qualifies you for tax relief and then you find out it doesn't, what happens? If something goes wrong with the opportunity zone, in which you have no control, could you be hit with all your taxes right away? That's the sticking point."