In a notice released on July 7, the IRS asked for comments on whether a group of regulations should be rescinded or modified. The regulations in question include three of interest to REITs: REIT spin-off/built-in gain regulations; partnership nonrecourse liability regulations; and section 385 debt-equity regulations.
NAREIT previously submitted comments on the REIT spin-offs/built-in gains regulations and debt-equity regulations. NAREIT also joined other national real estate organizations in requesting changes to the partnership regulations.
The notice came in response to an executive order issued by President Donald J. Trump in April directing the Treasury Department to submit an interim report identifying regulations that impose an undue financial burden on U.S. taxpayers, add undue complexity to the federal tax laws or exceed the statutory authority of the IRS.
(Contact: Dara Bernstein at dbernstein@nareit.com)