REITs: Developments in REIT Conversions, FIRPTA and Other Changes in the Tax Extenders Bill

What Real Estate and Tax Counsel Need to Know About Organizational, Operational and Tax Considerations

Recording of a 90-minute CLE/CPE webinar with Q&A


Conducted on Thursday, March 17, 2016

Recorded event now available

or call 1-800-926-7926
Program Materials

This CLE/CPE webinar will provide tax advisors and real estate counsel with a review of the various organizational, operational and federal tax requirements that must be met by real estate investment trusts (REITs). The program will analyze the tax changes applicable to REITS in the Omnibus Appropriations Act.

Description

As the REIT market continues to expand, tax advisors and real estate counsel are increasingly called upon to advise on transactions involving REITs. Counsel should understand key issues, including rules for REIT subsidiaries (QRSs and TRSs) and UPREIT structures, and special rules for REITs that own partnership and LLC interests.

The Consolidated Appropriations Act, 2016 (aka the tax extenders bill or the PATH Act) contains significant changes with respect to REITS. Favorable changes include clarification on how the asset and income tests apply to ancillary personal property. More significantly, foreign pension funds are no longer subject to FIRPTA withholding (although foreign pension funds investing in non-REIT real estate transactions in many cases will still be taxed) and the maximum stock ownership percentage a shareholder may hold in a publicly traded REIT without being treated as a U.S. real property interest is increased.

In a blow to REITS, however, the extenders bill generally prohibits REIT tax-free spinoffs by non-REIT entities with exceptions allowing a REIT to spin off another REIT or cases in which the corporation spun off is a TRS.

Listen as our authoritative panel of tax and real estate attorneys guides you through navigating the complex tax rules for structuring REIT investments and the tax treatment of REIT transactions. The panel will analyze the changes in the Omnibus Appropriations Act with respect to REITS.

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Outline

  1. Organizational requirements
  2. REIT income and asset tests
  3. REIT distribution requirements
  4. Qualified REIT subsidiaries and taxable REIT subsidiaries
  5. UPREIT structures
  6. REIT conversions

Benefits

The panel will review these and other key issues:

  • What are the organizational and operational tax rules for REITs?
  • What are the economic limitations and benefits of REIT status?
  • Are there remaining opportunities for REIT conversions after the tax extenders bill?
  • How will the FIRPTA changes in the tax extender bill impact the attractiveness of REITS to foreign investors?

Faculty

Bloomfield, Micah
Micah W. Bloomfield

Partner
Stroock & Stroock & Lavan

Mr. Bloomfield is a tax attorney whose practice emphasizes financial products. He has extensive experience on tax...  |  Read More

Greenberg, Mayer
Mayer Greenberg

Partner
Stroock & Stroock & Lavan

Mr. Greenberg provides advice to domestic and foreign investors on tax implications of joint ventures, mergers,...  |  Read More

Other Formats
— Anytime, Anywhere

Strafford will process CLE credit for one person on each recording. All formats include program handouts. To find out which recorded format will provide the best CLE option, select your state:

CLE On-Demand Video

$297

Download

CPE Not Available

$297