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Opportunity Zones Program Proves a Boon to Commercial Investors

Michael Snedeker

Based in the Boston metropolitan area, Michael Snedeker engages with Elite Building Corp as a commercial construction and real estate professional. As such, Michael Snedeker remains apprised of trends impacting the industry nationwide.

As highlighted in a recent Commercial Observer article, the federal tax reform bill enacted in early 2018 has an Opportunity Zones provision that does not focus specifically on real estate, but is having an effect in jump-starting investment in that area.
With opportunity zones defined as neighborhoods and regions that are “overlooked and underserved,” they have been so identified by the governor of each state and approved as eligible for such status by the U.S. Treasury Department. Such designated zones allow property investors to defer capital gains taxes until 2026 and attain an exemption if they hold onto the assets for more than a decade.
The result is that an increasing number of high-net-worth investors are taking advantage of these substantial tax savings in reinvesting earnings from previous investments that have matured. At the same time, these investments promise to reinvigorate census tracts that have suffered from low investment activity for many years.

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