8 Pages Posted: 4 Feb 2015
Date Written: January 19, 2015
Several reports have attacked REIT spinoffs because they erode the corporate tax base, apparently reducing government tax revenues. This article uses a very simple example to illustrate that multiple variables can affect the tax-revenue effect of a REIT spinoff and shows that under some assumptions the tax-revenue effect of a REIT spinoff can actually be positive.
Keywords: real estate investment trust, REIT, corporate-tax-base erosion, foreign investment in U.S. real property, tax-exempt investment in real property, REIT spinoff, REIT conversion
Suggested Citation: Suggested Citation
Borden, Bradley T., Counterintuitive Tax Revenue Effect of REIT Spinoffs (January 19, 2015). Tax Notes, Vol. 146, p. 381, No. 381, January 2015; Brooklyn Law School, Legal Studies Paper No. 402. Available at SSRN: https://ssrn.com/abstract=2559973