Mayer Brown
February 3, 2010
Please see our Hot Topics for more on this subject.
IRS Relief for REITs
Extension of Stock Dividend Safe Harbor for US REITs and RICs
Revenue Procedure 2010-12 Extends Guidance Allowing Real Estate Investment Trusts to Preserve Cash While Satisfying Distribution Requirements
Latham & Watkins
January 5, 2009
Please see our Hot Topics for more on this subject.
Legal
Considerations for REITs Paying Cash and Stock Dividends
Sidley
February
10, 2009
IRS
Facilitates REITs’ Ability to Utilize Stock Dividends to Preserve Cash
Foley
& Lardner
January
21, 2009
IRS Provides Cash-Strapped REITs
Relief by Liberalizing Certain Taxable Stock Dividend Rules
Dechert
December 2008
Real Estate Investment Trusts: IRS
Issues Temporary Guidance on Stock Distributions by Real Estate Investment
Trusts
Sullivan
& Cromwell
December
10, 2008
Internal Revenue Service and
Treasury Department Issue Guidance Benefiting Publicly Traded REITs
Skadden
December
12, 2008
Revenue Procedure Provides Welcome
Guidance for Cash-Strapped Real Estate Investment Trusts (REITs)
Sidley
December 15,
2008
REITS: Need Cash? IRS Provides
Temporary Relief
K&L
Gates
Corporate/Tax Alert
December 15,
2008
Liquidity,
liquidity, liquidity. Noting the liquidity “double whammy” faced by REITs (ie the
need to distribute substantially all of their taxable income annually and the
current inability to access the capital markets in order to do so), the Alert
goes over the IRS’s Revenue Procedure 2008-68 which provides temporary guidance
regarding stock distributions by REITs. Pursuant to the guidance, in 2008
and 2009, a publicly traded REIT [citing the Alert] “may make a stock
distribution with a stock-in-lieu-of-money election but with an overall cap on the cash
portion of such dividends equal to 10% of the total dividend” (which beats the 20%
seen in private letter rulings) and still treat the entire dividend as a
taxable stock dividend.
