Warning All New York State Opportunity Zone Taxpayers: The 2021 New York State budget decouples (diverts from the Federal Tax Code) from the tax treatment of realized capital gains used under the Opportunity Zone program starting January 1, 2021. This will prevent New York taxpayers from deducting a realized capital gain properly invested under the Opportunity Zone program from their net income in calculating their New York State taxes. When considered in conjunction with the restriction of the SALT deduction, this can cause a material increase in a New Yorker’s anticipated overall tax liability. Even though the New York State budget was passed in early April 2021, these changes are retroactive to January 1, 2021. All Opportunity Zone investments are still permitted and receive the applicable benefits under the Federal Tax Code. Any New York taxpayer who realized a capital gain in 2021 and then invested that capital gain into a Qualified Opportunity Zone Fund should immediately consult their Opportunity Zone attorney, specialist and/or accountant to understand how this budgetary change directly affects them. Adam R. Sanders at Rosenberg & Estis, P.C. continues to monitor this situation and is providing clients with the applicable guidance.
New York State Decouples On Opportunity Zones
by Rosenberg & Estis, P.C. | Apr 15, 2021 | Industry Updates
Categories
- In The News (1)
- Industry Updates (134)
- Newsletters (15)
- Podcast (17)
- Press Releases (149)
- R&E Events (173)
Archives
Recent Posts
- Rosenberg & Estis Named Among Crain’s 2023 “Best Places to Work in NYC”
- Entrepreneurial Real Estate Spotlight: Pine & Polk is Hudson Square’s Ultimate Provisions Shop and Speakeasy – Inside R&E Podcast Ep. 17
- Rosenberg & Estis Bankruptcy Team Preparing Clients for Impact of Potential Closings by CVS, Walgreens, Rite Aid and WeWork
- City of Yes for Housing Opportunity: NYC Mayor Eric Adams Announces Final Set of Proposed Revisions to Zoning Resolution
- The Residential Brokerage Process in NYC: Adapting from the Pandemic, Purchasing Trends and More – Inside R&E Podcast Ep. 16
Comprehensive Real Estate Representation Since 1975