Meyer, Unkovic & Scott Real Estate attorneys Grant Scott, Andrea Geraghty, and Kevin McKeegan hosted David Kerin, of Grossman, Yanak & Ford at the May 13 REAL Professionals Pittsburgh Mastermind Meeting.
Kerin provided a broad overview of “opportunity zones” as designated by the federal government, known in Pennsylvania as Keystone Opportunity Zones. “The spirit here is that they are trying to bring jobs, and bring new life into those areas,” said Kerin.
Opportunity zones allow investors to reduce or eliminate tax on capital gains, which are profits reaped from the sale of another asset. Long-term capital gains are taxed up to 20 percent at the federal level. Kerin pointed out there’s a low barrier for entry to those who wish to acquire property within a Keystone Opportunity Zone. “Almost anyone can participate in the program, any entity that is realizing a capital gain,” Kerin said. But he added that those who participate have to take great care in ensuring they follow state and federal rules outlined for opportunity zones, or risk becoming ineligible.
In Pennsylvania, more than 2,000 parcels have been designated as opportunity zones.