The leaders of the House Ways & Means and Senate Finance Committees wrote to the Treasury Department on Oct. 18 calling for changes to proposed regulations on the built-in gain (BIG) holding period for REITs.
House Ways & Means Committee Chairman Kevin Brady (R-TX) and Ranking Member Sander Levin (D-MI) joined Senate Finance Committee Chairman Orrin Hatch (R-UT) and Ranking Member Ron Wyden (D-OR) in expressing their view that Congress intended to link the BIG holding periods of S corporations and REITs at five years.
Earlier this year, Treasury issued temporary and proposed regulations that, among other items, changed the built-in gain holding period for REITs from the five-year period established in the PATH Act last December. The proposed regulations extended the holding period to 10 years.
The lawmakers called on the Treasury Department to amend the June regulations to specify a five-year holding period for REITs. The request was consistent with comments that NAREIT submitted in a comment letter submitted in July.
(Contact: Tony Edwards at tedwards@nareit.com)