Mark Van Deusen, principal at Deloitte Tax LLP, sat down for a video interview at Nareit’s REITwise: 2026 Educational Conference in Hollywood, Florida, March 24-26.
Van Deusen highlighted a key tension facing REITs: while existing tax law may support certain short-term rental structures, the IRS has historically refused to issue rulings for rental periods under 30 days. This disconnect leaves firms choosing between pursuing favorable interpretations of the law or adhering to the IRS’s more conservative stance—creating significant risk in an industry where REIT status is critical.
He noted that clarity on this issue has been delayed for over a decade, adding to ongoing uncertainty. On a more positive note, recent IRS guidance allows real estate taxpayers to revoke prior “real property trade or business” elections made between 2022 and 2024, enabling them to take advantage of bonus depreciation—an opportunity many missed due to earlier legislative changes.
Looking ahead, Van Deusen noted a lesser-discussed but potentially impactful issue: complex related-party rent rules. These can trigger unexpected compliance problems due to intricate ownership attribution standards, posing risks that many CFOs may be underestimating.