Daily Tax Report ®

IRS PLR: REIT’s Floating Docks Are Real Estate Assets, Income From Storage Facilities Are Rents From Real Property (IRC §856)

July 31, 2020, 5:00 AM

Floating docks on properties of a real estate investment trust (REIT) are real property for purposes of Treasury Regulations Section 1.856-10(b) and, therefore, are real estate assets for purposes of tax code Section 856(c)(4) and Section 856(c)(5), and amounts received for racking structure space in dry dock storage facilities on the properties won’t be considered as other than rents from real property (Section 856(d)), the IRS ruled. The presence of cabins on one of the properties won’t cause other assets on that property to be treated as lodging facilities, besides the cabins themselves...

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