Jared Kushner, the son-in-law of US President Trump, Trump’s close friend Richard LeFrak (a developer in New York City) and the great Trump Organization are all supposed to gain benefit from the recently launched federal scheme of “opportunity zones” in the financially underdeveloped regions throughout the nation. Those regions are to get tax benefits.
Trump Organization was considering a development of a hotel in Greenville, Mississippi with a devoted partner. And now this area has been declared under “opportunity zone”. Kushner’s case is also a similar one where his family had a real estate along the Jersey Shore. They had spent $13.15 million for the place and in April, the Treasury Department put that area under the same level. Therefore, these places now have the advantage of huge tax break.
Suresh Chawla, the partner in Trump Organization has denied his knowledge about the news earlier. Kushner’s properties of Maryland also fall under opportunity zones. This scheme was initiated in the 2017 tax bill and looked over by the Treasury Department. About 8,700 places were deemed under “opportunity zones”. While the investors are overexcited to hear the news, experts on housing and economic development have expressed immense displeasure. They have said this program to lack futuristic goals.
Chamber of Commerce has viewed this as a golden way to improve the lives of overall Americans and initiate more job opportunities. They also believe that along with the Department of Treasury, they would be able to gain maximum economic growth from this particular program.
Once Treasury has legally declared the zones, investors are more keen towards investing in these areas, developers are enthusiastic in plowing their capital surplus in these deemed areas etc. Real estate has been reported to gain huge hike in the values of the property. Recent numbers show that an anticipation of $15 million investments has been calculated.