In order to qualify for the tax advantages available for real estate investment trusts (“REITs”), the majority of a REIT’s assets must qualify as “real property”.  As the areas that REITs are investing in continue to grow, we are seeing more and more rulings from the IRS on what constitutes “real property” .

Most recently, the IRS released a private letter ruling last week (LTR 201521006) that held that ski lift towers constitute “real property” and are good REIT assets.  This ruling was not particularly surprising, but it is helpful guidance nonetheless.