Jared Kushner is selling his stake in Cadre, a real estate investment firm that sought to benefit from a tax break Kushner’s father-in-law, President Donald Trump, approved in 2017.
The tax law encouraged real estate ventures in “opportunity zones” to help boost the economy in lower income areas.
A spokesman for Kushner told Bloomberg that his involvement with the firm, which he helped found in 2014, was making it difficult to bring in new investors.
As Kushner also serves as an adviser to the president, questions about conflicts of interest between his real estate ventures and governmental work have plagued his tenure in the White House. Cadre was reportedly seeking investments from foreign governments like Saudi Arabia which would likely pose a conflict of interest for Kushner, whose father-in-law has faced similar scrutiny regarding his real estate projects.
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Kushner’s stake in the company is valued betwen $25 to $50 million, according to The New York Times. Three years prior his stake had been valued at an approximate $5 million but shot up in value after the Opportunity Zones tax break, which Ivanka Trump helped promote, was signed by the president.
“We are very, very excited about the potential,” Ivanka Trump said about Opportunity Zones in 2018. “The whole White House obviously is behind the effort. The whole administration.”
MSNBC’s Chris Hayes remarked on Twitter that it was “just was 500% increase in value directly tied to policy he pushed in the White House.”
When he first assumed his role in the White House, Kushner failed to list Cadre on a financial disclosure form but later revised it. The revised form stated Kushner “has been and will continue to be recused from particular matters in the broker-dealer, real estate and online financial services sectors to the extent they would have a direct and predictable effect on Cadre.”
Since joining the White House workforce, Kushner has no had any management role in the company but decided his limitations were making it difficult for the company to expand.
His divestment will not receive any capital gains taxes, as he received a certificate of divestiture from the Office of Government Ethics.