Paris says investing in Qualified Opportunity Funds may be a strategic tool to lower an overall tax burden.
SAN FRANCISCO—The tax reform act, commonly referred to as the Tax Cuts and Jobs Act of December 2017 has been largely incorporated into the Internal Revenue Code though some provisions still face interpretation and fine tuning. This includes the elephant in the room for many investors, carried interest, which has been much discussed but still has key components to be sorted out by the IRS, according to Chris Paris, partner, Moss Adams. So, what are the other changes affecting the real estate industry?
In recent months, states have been rolling out lists of designated opportunity zones under the new federal tax program, and real estate investors and developers are starting to act on them. The significant financial incentives are aimed to boost economic impact where it's needed most, says Paris. Owners and investors can defer and reduce capital gains from the sale or exchange of property by investing the proceeds into Qualified Opportunity Funds within 180 days. These funds must be invested, directly or indirectly, into property located in designated Qualified Opportunity Zones.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
