Julanne Allen, principal at PwC, participated in a video interview during Nareit’s REITwise: 2024 Law, Accounting & Finance Conference held March 19-21 in Hollywood, Florida.
Reflecting on her shift from the public sector to PWC, Allen said, "I've really come to appreciate how quickly and novel issues arise in the course of operations and business dealings with REITs."
Regarding transferable tax credits, Allen said, "With the changes to the tax credit regime... REITs not only can earn more credits but also have avenues for monetizing them by transferring them to third parties for cash."
Addressing impermissible tenant services (ITS) rules, Allen noted the complexities, saying, "The impermissible tenant service rules... are quite harsh... REITs try to avoid earning any ITS at any property... a close evaluation needs to be done on the services being provided."
The interview looks at the challenges of applying old laws to modern business practices and the intensive documentation required for tax credit transfers. It also underscores the importance of strategic planning to navigate regulatory complexities, such as ITS rules.