On December 20, 2017, the final version of the GOP tax reform bill (the “Act”) was approved by both houses of Congress and sent to the President for signature. The provisions of the new legislation will generally become effective for tax years beginning after December 31, 2017. Many of the provisions of the Act applicable to individuals will sunset after 2025 unless extended by Congress.
All partnerships, including LLCs treated as partnerships for income tax purposes, should amend their partnership and operating agreements to designate a “partnership representative” and potentially provide for certain elections under new partnership audit rules coming into effect in 2018.
On August 30, 2016, the IRS issued final regulations clarifying the definition of "real property" for purposes of the Code's REIT provisions. One of the requirements for a REIT is that at least 75% of a REIT's total asset value must be represented by real estate assets, cash and cash items (including receivables), and government securities.