September 16, 2015 Comments Off on REIT Spinoffs Under IRS Scrutiny Views: 403 California News, National News

REIT Spinoffs Under IRS Scrutiny

The Internal Revenue Service reportedly wants corporations to pause before undertaking REIT spinoffs of their commercial real estate assets. The IRS recently issued new guidelines indicating that it will not approve these types of deals until the agency has more thoroughly reviewed the issue.

The IRS is apparently concerned that some of these REIT spinoffs are being put into place by companies in order to avoid paying taxes. The new guidance could impact Darden Restaurant, the owner of Olive Garden and other chains, which is in the process of converting much of its real estate into a REIT.

Other companies reportedly considering such REIT spinoffs are Macy’s, McDonald’s and Yahoo.

Read More at WSJ.com

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