In The News

How Opportunity Zone Legislation Could Impact REITs


01 Jul 2019

Morrison & Foerster partner Jay Blaivas discussed the tax incentives of opportunity zone legislation in an article published by Nareit.

The article covers how new opportunity zone legislation has sparked excitement across the commercial real estate industry among investors that are hoping to grab a share of what could be a multibillion-dollar market. Jay spoke about the tax implications of this legislation, noting that “there is less likelihood to be a whole lot of activity from REITs using opportunity zones as a deferral for their own capital gain, because REITs can use 1031 exchanges for real estate where they can defer any gain indefinitely by reinvesting in other real estate.”

Jay also discussed the benefits that opportunity zone REITs offer to investors, including a simpler structure, like receiving a 1099 every year instead of a K-1 schedule.



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