"Opportunity Zone" boondoggle in Ocean Shores; Seattle Times writes about it in... Denver? (Aberdeen: sale)

[intergalactic_skunk]

I complained a few days ago (link) about the qualified opportunity zone tax break and how a program intended to "help struggling communities" was instead being spent on million dollar houses in Seabrook and tsunami-zone construction of dubious quality in Ocean Shores. The get-rich-quick fever among local homebuilders and house salespersons is disturbing.

The Seattle Times appears to have finally noticed this stinker of a boondoggle, but apparently they were more in the mood to fly to Denver while looking for examples:

https://www.seattletimes.com/busines...-income-areas/

Could somebody please reach out to the Seattle Times and let them know that there's a far more ridiculous case of this boondoggle much closer to their editorial offices?

This absurd tax break is going to cause an even worse hangover than the NINJA-loan nonsense of 2007, but all the pain will be concentrated in the places unfortunate enough to have been designated as "opportunity zones".

Ugh.

[PartIrish]

"Could somebody please reach out to the Seattle Times and let them know that there's a far more ridiculous case of this boondoggle much closer to their editorial offices?"

I nominate you!

[MondoTime]

... yeah, ‘skunk, step-up to the plate for this just cause (which approximately no one better understands as the result of reading your prose) and demonstrate your capabilities and worth to the society which surrounds you.

Thank you in advance for your filling of the void (OR representing it, pending which choice you make).

[intergalactic_skunk]

Story today in the Daily World about an Oregon investor who just parked a couple million in URMs (seismically-unusable buildings) with no plans to lease or redevelop. All of the buildings are in the QOZs. Press is slowly catching on:

Each of the properties lies within a federal Opportunity Zone — an investment tool and tax incentive program created by the Trump administration in December 2017

Such zones must be part of “an economically distressed community where new investments, under certain conditions, may be eligible for preferential tax treatment,” according to the IRS website.

Specific zones were designated all over the country in 2018. Grays Harbor County has three: One includes a large chunk of Aberdeen; one encompasses most of West Hoquiam; and the third covers a wide swath from Damon Point north past Moclips. (To view the map, visit www.commerce.wa.gov/growing-the-economy/opportunity-zones.)

Here’s how it works: An investor generates capital gains with the sale of assets, then rolls the money into a limited-liability corporation that qualifies as an Opportunity Fund. This allows them to defer the taxes on those gains for up to seven years, and provides a tax reduction of up to 15%. In addition, no further tax will be levied on the appreciation of Opportunity Zone acquisitions if the investor holds on to them for 10 years or more.

In short, investing in specific areas for the long term provides major tax benefits under this program.

Full story: Oregon investor buys the Becker Building | The Daily World