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Reported Effects of the Captive REIT & RIC Legislative Amendments

Part F of Chapter 60 of the Laws of 2007 made certain changes to the New York State tax treatment of real estate investment trusts (REITs) and regulated investment companies (RICs). Part FF-1 of Chapter 57 of the Laws of 2008 made additional amendments to the tax treatment of these entities. The intent of the 2007 and 2008 legislative amendments was to eliminate provisions in the Tax Law that allowed taxpayers to use these entities for the purposes of sheltering income from taxation. This ability had been closed to taxpayers on the federal level, but not for New York.

The 2008 amendments require that a report be issued by the commissioner of taxation and finance regarding the effect of these provisions on taxpayers.  This report, prepared in accordance with this mandate, analyzes information provided to the Department by taxpayers affected by this legislation and provides an estimate of various effects of the legislation on these taxpayers.  Because the information used for this report was derived from a survey of taxpayers rather than actual tax returns, the confidentiality provisions of the Tax Law do not apply.

The report presents information on:

  • legislative history regarding the tax treatment of REITs and RICs
  • the captive REIT and RIC reporting process
  • data considerations
  • tax impact of 2008 legislative amendments
  • tax impact of 2007 legislative amendments
  • REITs and RICs affected by the legislative amendments

Reported Effects of the Captive REIT & RIC Legislative Amendments (pdf)

Statistical tables (xls)

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