Frank McGrew, managing partner at McNally Capital, spoke with MMG Editor Kathryn Mulligan about a provision of the 2017 tax reform legislation designed to attract capital to economically disadvantaged communities.
The Tax Cuts and Jobs Act created an incentive for investors to deploy capital gains into opportunity zones, which include more than 8,700 areas identified by state governors. By investing in opportunity zones, family offices and private equity firms can benefit from tax deferral for recently realized capital gains.
“I think this will be talked about more and more in the deal community as people understand just how broad and important these opportunity zones will be throughout the country.”
McGrew described the program’s origin, benefits for investors, and the steps he and his colleagues at McNally are taking to prepare for this new opportunity.
Read more about McNally Capital’s perspective on opportunity zones in a white paper available on the firm’s website.
** McNally Capital and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for information purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction.**