GGP Tax Executive says Retention of Capital Critical in REIT Partnership Issues

Kate Courtis, senior vice president for taxation at General Growth Properties, Inc.  (NYSE: GGP), joined REIT.com for a video interview during REITWise 2015: NAREIT’s Law, Accounting and Finance Conference held in Phoenix.

Courtis moderated a panel at REITWise looking at the partnership tax issues encountered by REITs. Some of the issues the panel discussed included disguised sales and beneficial elections.

“When [REITs] want to recycle capital, retention of that capital is critical,” Courtis said.

Courtis also emphasized the importance of proper advice when contributing property to an UPREIT structure.

Meanwhile, Courtis discussed the particular challenges faced by REITs that are involved with real estate funds.

“Preferred interest—and the economics that go along with the funds—generally becomes critical because the funds may have a carry or there may be very detailed economic arrangements that can potentially be impacted by how they are drafted,” Courtis said.