11/15/2019 | By Nareit Staff
On Nov. 12, Nareit submitted comments on proposed regulations concerning “Classification of Cloud Transactions and Transactions Involving Digital Content” (Proposed Regulations). Among other things, the Proposed Regulations would clarify the treatment of income from transactions involving on-demand network access to cloud computing and other similar resources. They also would provide rules for classifying certain transactions as the provision of services or a lease.
While the scope of the Proposed Regulations purportedly would not extend to the REIT provisions of the Internal Revenue Code, in order to avoid confusion, Nareit recommended that the final regulations expressly state that their scope does not extend to these REIT provisions. In addition, Nareit’s comments supported the comments and analysis made by Ameek Ponda in an Oct. 24, 2019 comment letter.
(Contact: Dara Bernstein at firstname.lastname@example.org)