Reit liquidating trust
The proposed legislation introduced by the senior members of the tax-writing committees, and supported by the Treasury Department, would require all owners of a liquidating REIT to recognize the liquidating REIT's dividends as income, effective for distributions made after May 21, 1998. 2122 would not otherwise change the treatment of REIT distributions.
(Note that a REIT that receives liquidating dividends from another REIT could reduce its corporate tax liability by distributing the dividends to its own shareholders.) H. For example, the liquidating REIT would continue to not recognize gain on any distribution.
All of the outstanding Common Shares were automatically deemed cancelled, and the rights of beneficiaries in their Units will not be represented by any form of certificate or other instrument.
Shareholders of the Company are not required to take any action to receive their Units.
With a 1/2/3 year IRR profile of 25%/12.5%/8.3%, investors are positioned to realize substantial value.
Knowing When to Fold 'Em In my years of investing and observing the markets, I have come to the conclusion that one of the hardest decisions to make in business is knowing when to throw in the towel.
Background As discussed at the Government Relations Committee meeting on May 6, over the past few months the Treasury Department and the Administration had become aware of transactions in which a corporation eliminated taxes on certain items of income by sponsoring a private REIT or mutual fund.
At the GRC meeting, we reported that it appeared that policy-makers had decided to address this structure legislatively rather than through administrative action.
Winthrop Realty Trust is preparing for the final phase of its liquidation after gradually divesting assets for several quarters and paying off debt and senior obligations.
Some businesses, for whatever reason, simply cannot survive for much longer in the future.
Examples are numerous throughout history: you could have been a horse and buggy manufacturer in the early days of the automobile, a netsuke carver in early modern Japan, or Blockbuster in the age of Netflix.
After some 'seasoning," the non-REIT corporation would plan to liquidate the REIT.
For the next three years, the recipient corporation would not pay tax on the REIT's distributions, which continued to be eligible for the dividends paid deduction.Last week, proposed legislation was introduced to end the tax benefits derived from these transactions.