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IRS Temporarily Cuts REIT, RIC Cash Distribution Requirement

Nov. 30, 2021, 10:42 PM

The Internal Revenue Service is temporarily allowing real estate investment trusts and regulated investment companies to reduce the cash portion of distributions they make available to their shareholders, it said Tuesday, citing the impact of the coronavirus pandemic.

The IRS issued Rev. Proc. 2021-53, reducing the minimum amount of cash that shareholders of publicly offered REITs and RICs may receive as part of a distribution in order for the distribution to be taxable under Section 301, to 10%.

  • That modifies a safe harbor of 20% imposed in guidance that the IRS issued in 2017. The reduction is ...

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