Kenneth Betts, partner at Winston & Strawn LLP, joined REIT.com for a video interview at REITWise 2017: NAREIT’s Law, Accounting & Finance Conference in La Quinta, California.
Betts highlighted some of the issues raised during a REITWise REIT Tax Primer panel discussion.
The panel looked at REIT asset and income requirements. Betts pointed out that at least 75 percent of a REIT’s assets must be related to real property, while at least 75 percent of its gross income for each tax year must come from real estate-related sources such as rents from real property.
In terms of organizational requirements, Betts explained that REITs must have 100 or more shareholders and five or fewer individuals may not own more than 50 percent of the outstanding stock.
Betts also highlighted aspects of the Umbrella Partnership (UPREIT) model.