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1972-353

Type
Rev Rul
Subject
2.01e - Rents from Real Property - 75% Income Test - Rents based on Income or Profits
Keywords
Percentage Rents
Income or Profits, Based on
One Tenant Does Not Taint Others
Rents from Real Property
Based on Profits of Lessee
Year
1972
IRS Link
http://www.taxlinks.com/rulings/1972/revrul72-353.htm
Summary

Rent based on a percentage of a tenant’s net profits will not adversely affect the status of a REIT, if at least 90% of its gross income is derived from fixed rentals from other tenant’s. (Note: since this ruling, the income test is now 95%)

Title
72-353, 1972-2 C.B. 413
Guidance Tags
Rev Rul - 72-353, 1972-2 C.B. 413
Referenced By
9316024