On April 24, 2024, the U.S. Treasury Department and the Internal Revenue Service released final regulations (the “Final Regulations”) regarding when REITs and certain regulated investment companies investing primarily in...more
5/10/2024
/ C-Corporation ,
Domestic Corporations ,
Final Rules ,
FIRPTA ,
Foreign Ownership ,
Internal Revenue Code (IRC) ,
Investment Companies ,
IRS ,
Real Estate Investments ,
REIT ,
U.S. Treasury
On January 7, 2021, the U.S. Treasury Department and the Internal Revenue Service released final regulations under Section 1061 of the Internal Revenue Code of 1986, as amended (“the Code”). The Final Regulations address the...more
1/27/2021
/ Capital Gains ,
Capital Gains Tax ,
Carried Interest ,
Carried Interest Tax Rates ,
Holding Periods ,
Income Taxes ,
Internal Revenue Code (IRC) ,
IRS ,
New Regulations ,
Partnership Interests ,
Partnerships ,
Tax Rates ,
U.S. Treasury
The U.S. Treasury Department and the Internal Revenue Service recently released proposed regulations under Section 1061 of the Internal Revenue Code of 1986, as amended.1 Congress enacted Section 1061 in 2017 in order to...more
8/26/2020
/ APIs ,
Capital Gains ,
Carried Interest ,
Carried Interest Tax Rates ,
Holding Periods ,
Internal Revenue Code (IRC) ,
IRS ,
Partnership Interests ,
Pass-Through Entities ,
Proposed Regulation ,
Recharacterization ,
U.S. Treasury
On Friday, March 27, Congress passed, and the President signed, the bipartisan “Coronavirus Aid, Relief, and Economic Security Act” (the “Act”), a $2 trillion economic stimulus plan to provide funding and tax relief to...more
4/1/2020
/ Business Losses ,
CARES Act ,
Charitable Deductions ,
Coronavirus/COVID-19 ,
Employee Retention ,
Financial Stimulus ,
Income Taxes ,
Net Operating Losses ,
Payroll Taxes ,
Retirement Funds ,
Small Business ,
Student Loans ,
Tax Credits ,
Tax Deductions ,
Tax Planning ,
Tax Relief
The Bipartisan Budget Act of 2015 fundamentally changes the rules and procedures governing IRS audits of partnerships for taxable years beginning on or after January 1, 2018. These new rules are contained in new Sections...more
This alert focuses on various tax reform proposals and their potential impact on REITs and the real estate industry. Tax reform is high on the agendas of both the House Ways and Means Committee and the Trump administration....more
The Treasury issued new final, temporary and proposed regulations that take aim at, and significantly reduce the effectiveness of, leveraged partnership structures intended to achieve tax deferral to the contributing partner....more
I. Why Do REITs Have Ownership Limits in the First Place? -
Ownership limitation provisions are designed primarily to protect one of a REIT’s most valuable assets – its status as a REIT under the federal income tax...more
6/9/2016
/ Beneficial Owner ,
Board of Directors ,
Business Ownership ,
Controlling Stockholders ,
Corporate Charters ,
Income Taxes ,
Investment Management ,
Ownership Rules ,
Publicly-Traded Companies ,
REIT ,
Securities ,
Securities and Exchange Commission (SEC) ,
Tenants ,
Waivers
Under FIRPTA, a non-U.S. person’s gain from the sale of U.S. real property interests is treated as income that is effectively connected with a U.S. trade or business (“ECI”), and therefore, is subject to U.S. federal income...more
Under the default rule, any adjustment to partnership items or allocations among the partners will be determined, and any tax (including interest and penalties) attributable to adjustments will be collected, at the...more
In issuing IRS Notice 2015-59 and Rev. Proc. 2015-43 last week, the IRS intentionally created significant market uncertainty about the viability of “PropCo/OpCo” spin-offs as part of the PropCo’s REIT conversion (e.g., where...more
On July 22, 2015, the U.S. Treasury Department and Internal Revenue Service released proposed regulations under Section 707(a)(2)(A) of the Internal Revenue Code relating to disguised payments for services between partners...more
7/30/2015
/ Clawbacks ,
Compensation Agreements ,
Fee Waivers ,
Fund Sponsors ,
Internal Revenue Code (IRC) ,
IRS ,
Management Fees ,
Partnership Agreements ,
Partnerships ,
Profits ,
Profits Interests ,
Safe Harbors ,
Significant Entrepreneurial Risk (SER) ,
U.S. Treasury
Chairman David Camp (R-MI) of the U.S. House Ways and Means Committee recently issued a discussion draft of a comprehensive tax reform proposal which would materially modify the taxation of REITs and real estate related...more
Late last month, the Treasury Department issued proposed regulations that address partnership liabilities (section 752) and disguised sales of property (Internal Revenue Code section 707). If enacted, the section 752...more