When the Tax Cuts and Jobs Act was passed, a new tax deferral vehicle was created where taxpayers could defer paying tax on capital gains income by reinvesting these gains into Qualified Opportunity Zones (QOZ’s) through an investment into a Qualified Opportunity Fund (QOF). This new provision in the Internal Revenue Code has many taxpayers curious as to how they may be able to benefit from QOZ’s. With this curiosity, the question of whether QOZ incentives are better than Section 1031 exchanges for real estate reinvestments is often asked. The answer to this question is “it depends” on the specific facts and circumstances of your particular tax situation. This article will focus on the positives and negatives when comparing these types of tax deferred reinvestments to assist in drawing some conclusions.
It’s been very well publicized that the Tax Cuts and Jobs Act (TCJA) enacted a new opportunity to incentivize real estate investment and development in low-income communities across the country. In October of 2018, the IRS published proposed regulations on this program that provided direction to taxpayers, although many questions were left unanswered. In April of 2019, the IRS sought to address many of those questions by publishing a second set of proposed regulations which provided needed clarity on conducting an operating business within a Qualified Opportunity Zone (QO Zone) and structuring a Qualified Opportunity Fund (QO Fund).
A growing restaurant chain and a nail salon are joining a Jersey City shopping center, having leased a combined 10,000 square feet at the 95,000-square-foot complex.
Users in New Jersey’s booming industrial sector have faced a severe lack of supply in recent years, leading to unprecedented rent growth and an unabated race to find development sites. New space is on the way — and plenty of it — with millions of square feet slated to come online in the next two years. Yet market experts say demand will continue to outpace supply, given the continued upside of e-commerce and a race by traditional retailers to update their supply chains.
A new Trader Joe’s is coming to a well-known shopping center in Denville, under a nearly 15,000-square-foot lease with Retail Properties of America Inc.
A joint venture has reaped more than $150 million from the sale of a high-profile life sciences campus in Bridgewater, under a recent transaction by Newmark Knight Frank.
A development group has opened the doors to its newest project in Hoboken, a 424-unit luxury apartment building on the city’s emerging west side.
Atlantic Health System has acquired a 92,326-square-foot property in Rockaway for nearly $26 million, becoming an owner-occupier at a site that already houses many of its medical services.
A physical therapy practice is expanding with its purchase of a 5,245-square-foot office building in Bergenfield, in a newly announced transaction by NAI James E. Hanson.
Some experts say there is a good chance an economic downturn or recession will happen within the next two years, making it logical to begin bolstering protections. What steps can real estate professionals take now that will help them get through a recession and come out the other end even stronger?