Opportunity Zones Special Report
Morrison & Foerster real estate group chair Mark S. Edelstein and partner Jay Blaivas discussed opportunity-zone tax breaks in an Institutional Real Estate Americas Opportunity Zones Special Report feature.
“The tax breaks available under this program are essentially unprecedented,” Jay said of opportunity-zone investments, emphasizing that investors not only include the ability to completely avoid taxes on any gain realized after 10 years, but that there are also virtually no restrictions on the amount of gain that can be excluded from taxation.
Mark added that despite the appeal of these investments, “it’s good to remember that it’s all about the real estate project.” He discussed how the fundamentals of the deal should be prioritized above all else, noting that if the project is not sound and does not appreciate in value, there will be no tax benefits at all. “Some people are looking for good real estate to invest in and consider the tax benefits the cherry on top of the ice cream sundae,” he said. “This is a safer way to look at it.”