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IRS Relief for REITs

Extension of Stock Dividend Safe Harbor for US REITs and RICs

Mayer Brown
February 3, 2010

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Legal Considerations for REITs Paying Cash and Stock Dividends

Sidley Austin
February 10, 2009

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IRS Facilitates REITs’ Ability to Utilize Stock Dividends to Preserve Cash

Foley & Lardner
January 21, 2009

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Revenue Procedure Provides Welcome Guidance for Cash-Strapped Real Estate Investment Trusts (REITs)

Sidley Austin
December 15, 2008

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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.   

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