Page 15 - September October 2018 Disruption Report Flip Book

TRUMP ADMINISTRATION
SEJPATN.U-AORCYT.20210818
Assuming a discount rate of 5%, that $300,000 the taxpayer paid in 2018, is the equivalent to $443,000 in 2026. . If you calculate the present value of $255,000 2026 dollars, it becomes equivalent of $173,000 in 2018 dollars. The difference is not $45,00. It is either $143,000 or $127,000 in savings.
(This example assumes that the taxpayer would (1) pay at today’s capital gains rate and (2) today’s capital gains rate would be the rate would be the one in effect at the time the gain is finally recognized.)
That difference in tax savings, no matter how you calculate it, has an enormous effect on an investor’s annual return on his or her money. This is an added bonus to an already greatly beneficial program.” (Michael Best Strategies Advisory, Anne Canfield, 10/31/18)
Opportunities abound with OZ
The next wave generation infrastructure of 5G wireless technology will improve data transmission speeds by up to 100 times that of “4G” and transmit 1000 times more data and reduce by a factor of 10 the amount of time it takes for telecommunications systems to respond to each other. The adoption of 5G technology will spark explosive growth in Opportunity Zones. (In 2035, Will China or the U.S. Own the $12.3 trillion 5G market?, Stuart J. Sweet and Evelyn C. Kendall, 10/21/18)
Investor interest in Opportunity Zones, structured to encourage economic development into low- income communities, may stimulate more construction lending at a time when CRE lending has stagnated.
Projects that otherwise wouldn’t get a second chance may now be more appealing, according to Bank of Utah’s chief credit officer Roger Shumway. “I see it opening up some areas that we haven’t had before,” Shumway said. “I can see it helping us quite a bit. “It will be exciting to see new forms of equity flow into the state.”
“Lenders may be more willing to make CRE loans in these projects in these areas with what is going to be an enhanced equity contribution,” said George Morrison, a banking attorney at McNair Law Firm, Charleston, S.C. (American Banker, Andy Peters, 10/29/18)
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