The IRS ruled that amounts received by a REIT from the provision of parking spaces in its garage constitute qualifying rents from real property.
A build-to-suit like-kind exchange usually requires a great deal of planning and may take some time.
While a properly structured defeasance transaction can generate a significant deduction, taxpayers should consider the totality of the transaction when assessing the after-tax impact.
Planning and documentation in a lease agreement are key to income deferral, but be aware that the IRS’s interpretation of Sec. 467 is stricter than once thought.
This item addresses the tax consequences for the lessor and lessee in three areas.
Recent IRS guidance modifies the rules for determining the value of a distressed mortgage that the taxpayer can include as a real estate asset for purposes of the REIT asset test.
Rev. Rul. 2012-17 confirms that a real estate investment trust (REIT) may treat shares it holds in a money market fund as cash for purposes of meeting the qualifying asset tests of Sec. 856(c)(4)(A).