Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
REIT Investments Spike Due to Relaxation of Tax Rules
Author: Scarinci Hollenbeck, LLC
Date: January 18, 2013
Key Contacts
Back
Relaxation of REIT Tax Rules
More investors have begun incorporating real estate investments trust into their portfolios as the Internal Revenue Service takes a more relaxed stance on how REITs are structured for tax purposes.
More investors have begun incorporating real estate investments trust into their portfolios as the Internal Revenue Service takes a more relaxed stance on how REITs are structured for tax purposes.
Strict rules surrounding these accounts previously excluded individual investors and small businesses from this type of investment, and instead only opened them REITs up to large institutional investors. In recent months, however, more baby boomers who are trying to bolster retirement income, as well as small businesses, are showing more interest in these funds and utilizing them for wealth-building purposes, according to Forbes. In addition, more companies are converting to an REIT structure to gain tax benefits.
This is primarily because the IRS, in recent months, has taken a more flexible viewpoint regarding what qualifies as real property, and this relaxation has enabled more companies to convert to this structure. As more businesses can include structures, such as billboards, shelving, cellphone towers and other infrastructure as real property, investing in real estate has become more profitable for all involved. Further, an expansion of the REIT industry enables investors to continue diversifying their portfolios in an era where tax law changes and uncertainties have made investors skittish, Forbes reports.
While the IRS has relaxed its standards of what may qualify as an REIT, some uncertainty still lingers. For example, the federal tax agency has not yet ruled whether solar farms would qualify as an REIT. The solar industry has been hurt recently as a result of some notable bankruptcies, but is still viewed by many investors as an up and coming industry.
However, as the IRS continues to further clarify these definitions, there may be a shift where businesses and individuals invest.
If you would like to speak about the topic above regarding your own REIT Investments, please call me, Frank L. Brunetti.
- Practices: Tax and Trusts & Estates, Corporate Transactions & Business
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Guardianships in New Jersey: When a Loved One Can No Longer Manage Personal or Financial Affairs
When a family member can no longer make important decisions for themself, the question is often not whether the family will step in, but whether they have the legal authority to do so. A spouse may manage household finances, or an adult child may arrange medical care and pay bills. Still, informal assistance does not […]
Author: Marc J. Comer
New Jersey’s Revised UHAC Regulations: What Residential Developers Need to Know About Affordable Housing Commitments
New Jersey residential developers with affordable housing obligations should carefully review their existing approvals, development agreements, and proposed deed restrictions in light of the State’s revised UHAC regulations (Uniform Housing Affordability Controls). The regulations, which took effect on November 6, 2025, significantly change the administration and physical requirements for affordable housing units. For developers with […]
Author: Wendy Rubinstein Quiroga
“No Comment” Culture: Why Silence Is Often the Riskiest Legal Strategy
A “no comment” response is sometimes the right call when a legal problem arises. As a blanket policy, however, it lets allegations go unanswered, deadlines pass, evidence disappear, and manageable disputes grow into expensive litigation. The businesses that fare best are usually the ones that say little publicly while acting decisively behind the scenes. When […]
Author: Sean M. Pena
Utility-Scale Battery Storage Projects: A Legal Roadmap for Developers, Property Owners and Other Stakeholders
Utility-scale battery energy storage systems (BESS) are becoming an increasingly important component of the electric grid throughout New Jersey, New York, and Pennsylvania. As renewable generation expands, electricity demand increases and grid operators seek greater flexibility, battery storage can help balance supply and demand while providing additional capacity and reliability. For developers, battery storage presents […]
Author: Nicholas Wall
Navigating Disputes: Hire a Partnership Dispute Lawyer
A falling out between partners can be disastrous for any business. In many cases, the partnership will not survive. If you are in an unworkable situation with your partners, it may be time to consult a partnership dispute lawyer experienced in handling partnership breakups and dissolutions before the situation deteriorates any further. It is easy […]
Author: Jay McDaniel
Section 363 Sales in Bankruptcy: What Businesses, Lenders, and Buyers Need to Know
When a company enters Chapter 11 bankruptcy, many assume the process will culminate in a lengthy reorganization plan. However, distressed businesses are increasingly being sold through a different mechanism — a sale under Section 363 of the United States Bankruptcy Code. A Section 363 sale allows a company, as a debtor-in-possession in bankruptcy, to sell […]
Author: John D. Giampolo
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.