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IRS Loosens Requirements on REIT Cash to Promote Liquidity

May 4, 2020, 8:27 PM

IRS issues guidance allowing publicly traded real estate investment trusts and regulated investment companies to limit the amount of cash on hand to distribute to shareholders.

  • IRS says the move will help REITs “conserve capital and thereby enhance their liquidity”
  • The guidance requires at least 10% of the aggregate distribution be available in cash, down from 20%
  • NOTE: REITs are required to distribute at least 90% of their taxable income to its shareholders each year

To contact the reporter on this story:
Laura Davison in Washington at ldavison4@bloomberg.net

To contact the editors responsible for this story:
Joe Sobczyk at jsobczyk@bloomberg.net ...