The family of Trump son-in-law Jared Kushner is taking advantage of a tax break in the 2017 Trump tax cut that was designed to spur investment in low-income communities.
Bloomberg reports that Kushner Companies has been benefiting from a change in U.S. tax law that designates certain economically distressed areas as “opportunity zones” for investors and developers.
But Pier Village — the New Jersey-based “opportunity zone” where the Kushners are developing property — is not particularly economically distressed, and Kushner’s family is not building affordable housing for low-income residents.
“Pier Village promotes itself as a ‘jewel on the New Jersey coast,'” Bloomberg writes. “At a shoreline property built by Extell Development Co. in partnership with Kushner Cos., 786-square-foot one-bedroom apartments are being marketed for as much as $2,765 a month. At an adjacent development site, Kushner Cos. is constructing a 72-room luxury hotel.”
Under the new tax law, Kushner Cos. can avoid paying capital gains taxes altogether on profits from these projects as long as they own them for at least ten years.
Since Pier Village was designated as an “opportunity zone,” the Kushners have scooped up multiple properties that will help them score tax breaks under the law, including a 24-room Bungalow Hotel that cost $9 million and two single-family homes that together cost more than $4 million.