Extenders Bill Weighs FIRPTA Against REIT Spinoffs
ByAre you on top of CRE news? Sign up for GlobeSt.com’s National AM Alert to start each day ahead of the competition.
The Capitol
WASHINGTON, DC—A bill introduced on Monday night by the US House Ways and Means Committee would eliminate a strategy used by a growing number of companies recently: the spinning off of their real estate holdings into a REIT. The objection to this practice is that some of these deals are done strictly to gain the tax advantages of a REIT structure and not for larger business purposes.
Whether the bill becomes law, at this stage, unclear. Congress is racing to conclude the nation’s business by Friday, Dec. 11, when spending authority expires. In previous years that would be grounds for a government shutdown, but Speaker of the House Paul Ryan has said one is unlikely to happen — rather, a short-term spending bill will be passed instead…
