Nareit Offers Comments on Proposed Section 199A Tax Regulations

In a letter submitted to the Treasury Department and the IRS on Oct. 1, Nareit offered comments regarding the Proposed Section 199A Regulations (Proposed Regulations) issued Aug. 16. Nareit’s primary request is for Treasury and IRS confirmation that both direct holders of REIT stock and indirect shareholders of REITs through mutual funds receive section 199A’s 20 percent deduction for qualified REIT dividends.

The Proposed Regulations included a new holding period requirement with respect to qualified REIT dividends. Nareit requested that the final regulations not condition the definition of qualified REIT dividend on the 45-day holding period.

(Contact: Dara Bernstein at dbernstein@nareit.com)