The Real Deal reports that real estate developers, property owners and funds have until the end of December 2021 to take full advantage of the federal Opportunity Zone program, created in 2017 to incentivize investment in economically overlooked neighborhoods. Individual investors received a March 31st extension from the Treasury Department to invest certain capital gains in a Qualified Opportunity Zone Fund. There are other deadlines in September 2021 and the end of the year.
Attorneys and experts agree that investors are rushing to meet those deadlines in order to reap all the tax benefits of the government program designed to encourage development in thousands of distressed neighborhoods across the country.
In an interview with The Real Deal, Miami tax partner Logan Gans discussed potential changes to the opportunity zone tax incentive under the Biden Administration. As a candidate for president, Joe Biden expressed concerns about the OZ program, citing the need for stricter reporting requirements.
Logan stated that imposing additional limitations could dissuade some investors.
“We are not sure if projects for luxury buildings will get the same type of benefit or if there will be a change” to the existing law, said Logan.
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About Logan E. Gans
Logan E. Gans is a partner in the Miami office of Shutts & Bowen LLP, where he is a member of the Tax and International Law Practice Group. Logan regularly represents clients on U.S. Federal tax, international tax, and state and local tax matters. Logan also advises clients on the use of qualified opportunity funds for investments in opportunity zones and qualified opportunity zone businesses. He also counsels high net worth private clients on estate, trust, and gift tax matters.