74 OPPORTUNITY ZONE MAGAZINE | ISSUE 2 • VOLUME 2
ABE SCHLISSELFELD
MARKS PANETH
Abe Schlisselfeld , CPA , EA , is the managing partner of Marks Paneth LLP , and is chairman of the firm ’ s executive committee . Previously , Schlisselfeld was the partner-in-charge of the firm ’ s Real Estate Group . In that role , he explored the tax benefits and implications of the Qualified Opportunity Zones program since its introduction in the Tax Cuts and Jobs Act of 2017 , allowing him to become a sought-after speaker on the topic . In 2020 , he was selected as one of the Top 25 Opportunity Zone Influencers in the Tax Specialist category by Opportunity Zone Magazine .
WHAT NEW TAX CHANGES IMPACTING THE OPPORTUNITY ZONE INDUSTRY CAN WE EXPECT IN 2022 ?
A few months ago , we were bracing for a sharp increase in the capital gains rates . That had many Opportunity Zone investors reassessing their positions in OZ investments . They had to figure out if the significant increase in tax ( due in 2026 ) would materially affect their return . As that concern wore off , the Build Back Better Bill was contemplating a surcharge of 5-8 % on those with income over $ 10 /$ 25 million . With the act apparently off the table , there is somewhat of a sigh of relief from the OZ world . One thing I know for sure is to be ready for the unexpected .
JOHN SCIARRETTI
NOVOGRADAC
John Sciarretti is a partner in Novogradac ’ s Dover , Ohio office , where he specializes in real estate finance , community development and renewable energy . Sciarretti focuses on the Opportunity Zones incentive , the historic tax credit , new markets tax credit and renewable energy tax credits . Sciarretti leads and coordinates the Novogradac Opportunity Zones Working Group , a membership organization that is highly regarded for the work it does addressing technical issues surrounding the OZ incentive . He consults with tax credit investors , syndicators , community development entities , Qualified Opportunity Funds and developers on structuring and syndicating tax credits and other incentives .
WHAT NEW TAX CHANGES IMPACTING THE OPPORTUNITY ZONE INDUSTRY CAN WE EXPECT IN 2022 ?
There are a number of policy initiatives that the Novogradac Opportunity Zones Working Group would like to see move forward , including a two-year extension to the deferred gain recognition date , through the end of 2028 , to make up for delays in final regulations and delays caused by the pandemic ; a fund-to-fund concept that works with OZs , which doesn ’ t work under current law ; as well as a number of regulatory modifications that we have communicated to the U . S . Department of the Treasury and the Internal Revenue Service that would make the incentive more useful for investing in affordable housing and operating businesses .
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