1999-09

Type

PLR

Subject

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

2.02 - Interest

2.07 - Non-Qualifying Income

4.04 - Third Party Service Subsidiary (Preferred Stock Subsidiary)

Keywords

Rents from Real Property

Travel Services

Third-Party Service Subsidiary

Executive Office Services to Tenants

Independent Line of Business

Travel Services to Tenants

Truck Rentals

Year

1999

IRS Link

http://www.irs.gov/pub/irs-wd/9917039.pdf

Summary

The IRS holds that neither making executive office services and travel services available to tenants directly and indirectly through a REIT’s third party subsidiary taints otherwise qualifying rental income.

Title

199917039

Guidance Tags

PLR - 199917039

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.

1999-09

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