Primer on Real Estate Investment Trusts

Become familiar with the use of REITs and the tax rules that apply to these increasingly utilized investment structures.

REITs are the investment vehicle of choice for holding interests in a diversified portfolio of real estate properties, as opposed to owning an interest in a single property. Estimates are that more than $300 billion are currently invested in publicly traded REITs and more than $70 billion are invested in nontraded REITs. As the interest in alternative assets rises and real estate is being increasingly examined as presenting a significant gain opportunity given current market conditions, more investors, including nontraditional real estate investors, such as retirement plans and charitable organizations, are examining the ownership of REIT shares as part of their portfolio. Learn about the uses, advantages and disadvantages of the REIT structure for owning real estate. Hear a discussion of the basic tax rules that relate to REIT formation and operation, including the organizational rules, asset tests, income tests, distribution requirements, and the taxation of the REIT and its shareholders. Certain structural alternatives associated with REITs, including the use of subsidiaries, QRSs and TRSs, and partnerships, UPREITs and DOWNREITs, will be reviewed; as well as changes made to the REIT provisions in the Protecting Americans from Tax Hikes Act of 2015 (signed 12/18/2015).