Counterintuitive Tax Revenue Effect of REIT Spinoffs

8 Pages Posted: 4 Feb 2015  

Bradley T. Borden

Brooklyn Law School

Date Written: January 19, 2015

Abstract

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

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

Bradley T. Borden (Contact Author)

Brooklyn Law School ( email )

250 Joralemon Street
Brooklyn, NY 11201
United States

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