Presidential son-in-law Jared Kushner last month sold his stake in a company that invested in Opportunity Zones, a designation created under the 2017 Tax Cuts and Jobs Act. This means Kushner will benefit from tax breaks that he and his wife Ivanka Trump both lobbied to pass as part of the 2017 tax overhaul.
According to the Associated Press, the Office of Government Ethics on Monday released a public filing showing that Kushner had requested and received permission to defer capital gains on the sale of his stake in Cadre, a digital platform that allows investors to buy stakes in commercial properties.
Kushner, who is also a senior advisor to the president, founded Cadre in 2014 with his brother Joshua Kushner and current CEO and Goldman Sachs alum Ryan Williams.
While the exact amount Cadre invested in Opportunity Zones is not known, Cadre had expressed plans to invest heavily in the 8,760 designated Qualified Opportunity Zones.
The financial disclosure report Kushner filed with federal ethics officials last year estimated that his stake in Cadre was worth between $25 and $50 million. His shares in Cadre were previously valued at around $5 million, according to financial disclosures from three years ago.
The sale of Kushner’s stake in Cadre came amid increased scrutiny from potential investors of the conflicts of interest associated with his involvement in the real estate venture. Bloomberg reported last year that Saudi-backed SoftBank declined to invest in the company after Kushner refused to divest from the firm.
“I would be lying if I said the political angle wasn’t frustrating or concerning,” Williams told Forbes last year. “There are people who won’t work with us, and we get that.”
A Cadre spokesperson told The Real Deal last month that the company planned to scale back investing in Opportunity Zones.
[Image via Saul Loeb/AFP/Getty Images]