Last Year’s Partnership Provisions Creating Issues, Lawyer Says

Stefan Tucker, a partner at law firm Venable LLP, joined REIT.com for a video interview at REITWise 2016: NAREIT’s Law, Accounting and Finance Conference at the Marriott Marquis in Washington, D.C.

Tucker highlighted some of the more significant tax developments in the area of partnerships for the real estate industry and developers.

Tucker noted that a series of provisions came out under the Bipartisan Budget Act of 2015 deal with partnerships, particularly large partnerships. The provisions impose the burden of tax on the partnership rather than the partners, he said. This means that people who leave the partnership don’t have the burden of making up any deficit.

“That’s going to create a lot of issues for people coming into partnerships,” Tucker said.

Meanwhile, Tucker said there are issues in the Foreign Investment in Real Property Tax Act (FIRPTA) rules, such as what constitutes a foreign pension plan, that still need to be clarified.