1997-12

Type

PLR

Subject

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

4.04 - Third Party Service Subsidiary (Preferred Stock Subsidiary)

Keywords

Fees (Tenants and Service Providers)

Truck Rental Services

Independent Line of Business

Permissible Tenant Services

Truck Rental Services

Third-Party Service Subsidiary

Independent Line of Business

No Ruling Policy, IRS

Truck Rental Services

Year

1997

Summary

A self-storage REIT may offer containerized storage services to non-tenants through its nonqualified REIT subsidiary, without tainting rents received from the REIT's mini-warehouse tenants.

Title

9734011

Guidance Tags

PLR - 9734011

Referenced By

N/A

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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.

1997-12

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