We are providing FREE consultations via PHONE or VIDEO conferencing for your safety during Covid 19 emergency. Please feel free to call us if you have any with questions! 877-788-2937

REIT changes in the 2008 Housing Act

REIT changes in the 2008 Housing Act

Mike Habib, EA Included in the $15.1 billion of housing tax incentives in the recently enacted “Housing Assistance Tax Act of 2008” (the Housing Act) is a package of changes liberalizing the real estate investment trust (REIT) rules. Under these new provisions:

  • Foreign exchange gains that a REIT generates from operating real estate outside of the U.S. generally will qualify under both REIT gross income tests.
  • The limit on a REIT’s ownership of taxable REIT subsidiaries (TRSs) increases from 20% to 25% of the REIT’s gross assets.
  • The safe harbor test for dealer sales is changed by reducing the holding period requirement from four years to two years and by allowing measurement of the 10% sales test by fair market value instead of tax basis.
  • Health care facilities can be leased by a TRS to a REIT under the same rules that currently apply to lodging facilities.
  • The new rules for REITs are generally effective for tax years beginning after the date of enactment. However, some of the effective dates are accelerated to apply to transactions entered into after the date of enactment, e.g,. dispositions tested under the dealer sales rules.

I hope this information is helpful.

For tax problem resolution CLICK HERE.

Client Reviews
Mike has given us peace of mind! He helped negotiate down a large balance and get us on a payment plan that we can afford with no worries! The stress of dealing with the IRS is huge and Mike helped us through it all. The peace of mind is invaluable, thank you Mike!April S.
Mike Habib - Thank you for being so professional and honest and taking care of my brothers IRS situation. We are so relieved it is over and the offer in compromise process went just as you said. Mike is very professional and will give you honest answers to the OIC process and you can really trust him. You won't be sorry you chose him!Joe and Deborah V.
Mike is a true professional. He really came thru for me and my business. Dealing with the IRS is very scary. I'm a small business person who works hard and Mike helped me see that they are not that scary after all. He was always there with the answers I needed and was very good about calling me back which I appreciated since your first reaction is to freak out and ask a million questions. He solved a messy case and worked very hard to resolve it. His rates are VERY reasonable for the amount of work he does! I give him my highest recommendation!Marcie R.
Mike was incredibly responsive to my IRS issues. Once I decided to go with him (after interviewing numerous other tax professionals), he got on the phone with the IRS immediately (as in the same day I signed with him) to squash an impending issue. And he worked directly with them to quickly come to a resolution I am very happy with. I'd highly recommend reaching out to Mike to see if he can help you with any IRS issues. I'm very satisfied!Marshall W.
I’ve seen and heard plenty of commercials on TV and radio for businesses offering tax help. I did my research on many of them only to discover numerous complaints and unresolved tax issues. I found Mike Habib through my own online search and contacted him. He was very professional with great communication, always answering my questions and concerns. Mike resolved my complicated tax problem just as he said he would. I would definitely recommend his services to family and friends.Nancy & Sal V.
BBB Accredited Business
Trust Link
California Society of Enrolled Agents
Enrolled Agent
Contact Information