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New Law Liberalizes REIT Provisions

By Doug Cornelius

Last week, President Bush signed the Housing and Economic Recovery Act of 2008 [html] [pdf] into law. You have heard about all of the programs designed to stimulate the housing market and to deal with Fannie Mae and Freddie Mac. Summary of the ?Housing and Economic Recovery Act of 2008" [.pdf] from the Senate Banking Committee.The Act also contained some changes to the REIT limitations. From Goodwin Procter's Client Alert, New Law Liberalizes REIT Provisions [.pdf]:The Act shortens the prohibited transactions safe harbor holding period from four years to two. Unless the safe harbor applies, a REIT is potentially subject to a tax equal to 100% of the net income derived from a prohibited transaction (i.e., a sale of property held primarily for sale to customers in the ordinary course of business, or ?dealer property?)...continue to full post

Full post as published by Real Estate Space on August 04, 2008 (boomark / email).