BarbriSFCourseDetails
  1. keyboard_arrow_leftBack

Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Tax Law

Date & Time
  • event Date

    Thursday, February 24, 2022

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.

  • BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.

  • BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

$347.00
CLE
CPE
ALL

This CLE/CPE course will provide tax counsel and advisers with an in-depth analysis of key tax considerations and related issues for real estate investments trusts (REITs) and regulated investment companies (RICs). The panel will also discuss recent developments including Revenue Procedure 2021-53 permitting certain REIT and RIC stock distributions to count as dividends for purposes of minimum dividend requirements, proposed legislation, and developments in RICs investing in cryptocurrencies.

Faculty

Jennifer H. Weiss
Shareholder
Greenberg Traurig LLP

Ms. Weiss focuses her practice on structuring, negotiating, and documenting complex tax oriented commercial transactions, primarily involving real estate, real estate securities, and capital market transactions. She represents traded REITs, public non-traded REITs and private REITs, and real estate operating companies, and is involved in most aspects of their portfolio acquisitions and dispositions, fund formations, joint ventures and strategic alliances, as well as the formation, qualification, and operation of REITs for federal income tax purposes. Ms. Weiss also represents public, private, and institutional taxable and tax-exempt clients structuring collective investment and reinvestment vehicles, real estate securitization, equity and debt investment structuring and restructuring, work outs, and venture capital transactions on a tax-deferred basis, including all aspects of investments in pass-thru entities.

expand_circle_down Expand to View Full Bio expand_circle_up Collapse Bio
David Z. Nirenberg
Partner
Chapman and Cutler LLP

Mr. Nirenberg is a partner in Chapman's Tax Department. His practice focuses on securitizations, taxable and tax-exempt derivative financial products, including tender option bond trusts, debt and equity capital markets transactions, investment funds, banks and securities dealers, choice of entity, and withholding tax issues.

expand_circle_down Expand to View Full Bio expand_circle_up Collapse Bio
Nickolas Gianou
Partner
Skadden Arps Slate Meagher & Flom LLP

Mr. Gianou represents clients on a wide range of tax matters, including partnership transactions, public and private mergers and acquisitions, initial public and other debt and equity offerings, REITs, RICs, restructuring transactions, and investments by sovereign wealth funds and other foreign investors in the United States, including under the Foreign Investment in Real Property Tax Act. He advises private equity funds, venture capital funds, hedge funds and real estate investment funds in connection with fund formation transactions, acquisitions and dispositions, and restructurings. He also helps clients obtain private letter rulings from the IRS regarding numerous REIT and other matters.

expand_circle_down Expand to View Full Bio expand_circle_up Collapse Bio

Description

Fund managers and investors must consider various issues when complying with their REIT and RIC tax obligations. Any missteps in tax planning and reporting for REITs and RICs can significantly impact tax liability and potential audit risk.

Tax counsel and advisers must have a thorough understanding of REIT formation and investment, including rules relating to REIT subsidiaries (QRSs and TRSs) and REITs that own partnership and LLC interests. REITs must satisfy complex IRS requirements regarding the organization of the entity, its income, assets, and distribution of income, as well as its ownership base.

The Internal Revenue Code provides special favorable rules for the taxation of RICs. Companies registered as an investment company under the provisions of the Investment Company Act of 1940 may elect to be a RIC if it satisfies specific requirements relating to the source of its income and the diversification of its assets. If additional distribution requirements are met, a RIC will be taxed as a pass-through entity that acts as a conduit of income to its shareholders, allowing the RIC to deduct dividends paid to its shareholders in computing its taxable income and gains.

In addition, on Nov. 30, 2021, the IRS issued Rev. Proc. 2021-53, which allows publicly offered RICs and publicly offered REITs to limit the cash component of their dividends to a maximum of 10 percent cash if specific procedures are followed.

Listen as our authoritative panel guides you through navigating the complex tax rules regarding the tax treatment of REIT and RIC transactions.

Outline

  1. REITs
    1. Organizational requirements
    2. Income and asset tests
    3. Distribution requirements
    4. Qualified vs. taxable subsidiaries
    5. Investor taxation
  2. RICs
    1. Source of income requirements
    2. Diversification requirements
    3. Distribution requirements
    4. Tax treatment of qualifying RICs and shareholders

  3. Best practices for confronting and managing risk

Benefits

The panel will review these and other key issues:

  • What are the organizational and operational tax rules for REITs?
  • What are the limitations and benefits of REIT status?
  • What are the income, diversification, and distributions requirements for RICs?
  • How are qualifying RICs and shareholders treated for tax purposes?
  • What are best practices for confronting and mitigating risk?

NASBA Details

 

Learning Objectives

After completing this course, you will be able to:

  • Understand the organizational and operational tax rules for REITs
  • Recognize the tax implications and benefits of REIT status
  • Ascertain the income, diversification, and distributions requirements for RICs
  • Understand how qualifying RICs and shareholders treated for tax purposes

  • Field of Study: Taxes
  • Level of Knowledge: Intermediate
  • Advance Preparation: None
  • Teaching Method: Seminar/Lecture
  • Delivery Method: Group-Internet (via computer)
  • Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
  • Prerequisite:

    Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of pass-through taxation, including taxation of partnerships, S corporations and their respective partners and shareholders.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).