Tax Tweaks On Property Transfers From C Corp. To REIT
August 21, 2013, 11:58 AM EDT
Law360, New York (August 21, 2013, 11:58 AM EDT) -- On Aug. 2, 2013, the Treasury Department published final regulations setting forth the circumstances under which the taxable disposition by an entity taxable as a real estate investment trust or regulated investment company of property that was formerly owned by a C corporation will be subject to corporate level tax.
Unlike C corporations, REITs and RICs are generally not subject to corporate income tax on the disposition of appreciated property. Consequently, Congress authorized the Treasury to craft regulations to limit the ability of C corporations to...