[经管营销]A Primer on REITs final.pptVIP

AABS Global Learning A Primer on REITs FEDERAL TAXATION OF REITS Your Presenters Mark Fisher Washington, D.C. Brooke Griffiths Washington, D.C. Alex Park Greenville, SC Robert Schachat Washington, D.C. Brooke Sikes Dallas, TX Dianne Umberger Washington, D.C. Objectives Review REIT technical requirements Identify potential tenant services issues Review taxation of REIT and shareholders Overview of tax return compliance and FAS 109 matters Agenda Welcome and Introduction REIT Technical Requirements Web-Based REIT Qualifier Tax Compliance Matters Hot topics Open Forum QA / Conclusion I. REIT TECHNICALREQUIREMENTS History, Overview Organizational Requirements REIT History Sanctioned by Congress in 1960 to provide a vehicle for investors to pool funds to acquire real estate Key tax aspect – allowed a deduction for dividends paid Subject to special rules to ensure REIT status is limited to investments in real estate and mortgages REIT History 171 public REITs, many more private REITs Equity REITs Office Retail: shopping centers, regional malls, free standing Apartments / Manufactured Homes Industrial Lodging Health Care Diversified Self-Storage, Specialty REIT History Mortgage REITs Home Financing Commercial Financing REIT Qualification Rules Organizational Miscellaneous Requirements Must be a corporation, trust or association (856(a)) Managed by trustees or directors (856(a)(1)) Transferable shares (856(a)(2)) Otherwise taxable as a domestic corporation (856(a)(3)) Not a bank or insurance company (856(a)(4)) Have a minimum of 100 shareholders (waived for REIT’s 1st taxable year; thereafter must satisfy for 335 days of 12-month year) (856(a)(5)) Not “closely-held” (waived for REIT’s 1st taxable year) (856(a)(6)) REIT Qualification Rules (Con’t) Elects to be taxed as a REIT (856(c)(1)) Calendar tax year, except for certain grandfathered REITs (859) Annual REIT Income Tests 95% income test (856(c)(2)) 75% income tests (856(c)(3)) Quarterly RE