As enacted on Dec. 18. 2015, The PATH Act modernized the REIT rules to make REIT-based real estate investment more efficient and flexible, consistent with the proposals packaged first by in 2012 in the Update and Streamline REIT Act (U.S. REIT Act). These provisions improve safe harbors from the dealer sales rules; repeal the preferential dividend rules for both listed and public non-listed REITs and provide the IRS with the authority to provide relief to private REITs from these antiquated rules; enhance the ability of taxable REIT subsidiaries (TRSs) to provide certain services; eliminate potential double taxation of earnings and profits; enhance the ability of REITs to hold certain debt assets of listed and public non-listed REITs; enhance the ability of REITs to hold certain ancillary personal property; and improve certain REIT hedging abilities. 



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