1996-20

Type

Subject

2.01 - Rents from Real Property - 75% Income Test

2.01a - Rents from Real Property - 75% Income Test - Generally

2.01b - Rents from Real Property - 75% Income Test - Permissible Services

2.01c - Rents from Real Property - 75% Income Test - Personal Property

2.02 - Interest

2.08a - Generally

5.00 - Independent Contractor

Keywords

Administrative Services

REIT Collecting Charges for Independent Center

Fees (Tenants and Service Providers)

Business Equipment (Non-Qualifying)

Carpet Cleaning (Non-Qualifying)

Exercise Room, Tenant Charge for

Non-Qualifying Revenue

Guest Apartments

Non-Qualifying Income

Independent Contractor

REIT Employee (Hired by Tenants)

Maintenance, Replacement and Repairs

Electrical Systems and Fixtures

Plumbing Systems and Fixtures

Common to Property

Turnkey (between Tenants)

Independent Contractor

Permissible Tenant Services

Business Equipment, Use of

Concierge Services

Deliveries, Accept

Mass Transit Tokens

Telephone Message Center

Notary Services

Referral Services

Ruling by Property Type

Tools (Available to Tenants)

Vacuum Cleaners (Available to Tenants)

Personal Property

15% Test (Subleased Property)

Recreational Facilities/Activities

Sports Equipment (Available for Use)

Rents from Real Property

Concierge Services (de Minimis Amount)

Security Services

Generally (Electric, Gas, Water, Sewer)

Year

Summary

IRS approves an expansive list of services for which a multi-family REIT may receive income without tainting underlying rents. IRS also approves concierge services.

Title

Guidance Tags

Referenced By

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What's a REIT?

REITs, or real estate investment trusts, are companies that own or finance income-producing real estate across a range of property sectors. These real estate companies have to meet a number of requirements to qualify as REITs. Most REITs trade on major stock exchanges, and they offer a number of benefits to investors.

Why Invest in REITs

REITs historically have delivered competitive total returns, based on high, steady dividend income and long-term capital appreciation. Their comparatively low correlation with other assets also makes them an excellent portfolio diversifier that can help reduce overall portfolio risk and increase returns. These are the characteristics of real estate investment.

About Nareit

Nareit serves as the worldwide representative voice for REITs and real estate companies with an interest in U.S. real estate. Nareit’s members are REITs and other real estate companies throughout the world that own, operate, and finance income-producing real estate, as well as those firms and individuals who advise, study, and service those businesses.