Tax planning for property “sale” to an UPREIT
- Date:
- Wednesday, Oct. 1, 2014
- Time:
- 2 p.m. - 3 p.m. EDT
The umbrella partnership real estate investment trust (UPREIT) structure presents a unique opportunity for owners of real property to diversify their holdings, maintain a tax-efficient source of cash flow, and transition out of the day-to-day activities of a lessor.
The umbrella partnership real estate investment trust (UPREIT) structure presents a unique opportunity for owners of real property to diversify their holdings, maintain a tax-efficient source of cash flow, and transition out of the day-to-day activities of a lessor. In order to provide for an efficient transaction and avoid unplanned results, property owners need to have a working knowledge of the UPREIT structure and the considerations that need to be addressed when engaging in a transaction with an UPREIT.
Learning objectives
At the conclusion of this session, you will be able to:
- Articulate the ownership chain of an UPREIT structure.
- Explain the tax consequences resulting from contributing real estate to an operating partnership in exchange for cash and operating partnership (O.P.) units.
- Articulate the agreement provisions that should be considered to optimize the post-contribution tax results.
- Describe the complications that arise when attempting to use O.P. units to complete a like-kind exchange.
Presenters
- Edward Hannon, Business Law Partner, Quarles & Brady LLP
- Dean Rocheleau, Real Estate and Construction Partner, Plante Moran
- Mark Sutton, Real Estate and Construction Senior Associate, Plante Moran
Moderator
- Sarah Shepard, Real Estate and Construction Partner, Plante Moran
