In a letter sent to the Senate Finance Committee on July 19, NAREIT offered its perspectives on comprehensive tax reform and the potential effects on real estate investment.
“It is important to note that, as the public increasingly searches for investments to help secure their savings and their futures, the U.S. REIT industry – primarily through the elected burden of mandatory distribution of taxable income – has helped to foster growing interest in long-term, income-oriented real estate investment in the U.S. and, increasingly, around the world,” wrote NAREIT President and CEO Steve Wechsler in the letter to Senate Finance Committee Chairman Orrin Hatch (R-UT) and Ranking Member Ron Wyden (D-OR).
The letter also provided suggestions on guiding principles for REITs and real estate investment in the context of tax reform. For example, NAREIT noted the importance of maintaining parity between REITs and other passthrough entities with respect to the taxation of rent and interest.
(Contact: Tony Edwards at tedwards@nareit.com)