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Update: OBBBA Tax Provisions Impacting REITs and Foreign Investors

On July 1, 2025, a little over two weeks after the Senate Finance Committee released its draft tax title (the “Initial Senate Draft”), the U.S. Senate secured sufficient votes to advance its version of the “One Big Beautiful...more

IRS Releases Favorable Guidance on the Tax Treatment of Payments to REITs and MLPs for Subsurface Carbon Dioxide Storage

Along with the broader market, real estate investment trusts (“REITs”) and publicly traded partnerships, frequently referred to as master limited partnerships (“MLPs”), have increasingly embraced the principles of...more

IRS Changes Tack on Rents Paid Under Escalation Clause as REIT Qualifying Income

In a ruling that may impact real estate investment trusts (REITs) with leases that have percentage or contingent rent clauses, the IRS recently changed its prior position that rent paid under a formulaic rent escalation...more

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