If you’re young and in real estate, Opportunity Zones are the place to be, according to Newmark Knight Frank president James Kuhn.
“I think this is going to be analogous to the beginning of the startup world, where young people were able to wake up, go on the internet, go on their laptop, create an app, create a company,” said Kuhn. “And I think that for all our NYU graduate students and all the young people in America, I think this is an opportunity … to do very small projects to start and become entrepreneurs.”
The program enacted as part of the Trump administration’s tax overhaul, provides tax deferments and tax breaks for developers who invest in projects in designated low-income neighborhoods across the country. Those who make qualified investments in an opportunity zone can defer capital-gains taxes from an unrelated investment, and any gains on an investment in the zone are tax exempt as long as they’re held for a decade. Treasury Secretary Steven Mnuchin believes the program will spur $100 billion in capital investment across the country.