Bill > S1334

This bill amends the Internal Revenue Code of 1986 to increase the percentage limitation on assets that Real Estate Investment Trusts (REITs) can hold in taxable REIT subsidiaries (TRS) from 20% to 25%. In the context of real estate investment, a REIT is a company that owns, operates, or finances income-generating real estate, and a taxable REIT subsidiary is a corporation in which a REIT can hold an ownership stake that is subject to corporate income tax. The bill specifically modifies Section 856(c)(4)(B)(ii) of the tax code to make this change, which would allow REITs to have a larger percentage of their assets in these taxable subsidiaries. The amendment would take effect for taxable years beginning after December 31, 2025, giving businesses and tax professionals time to prepare for and adapt to the new asset limitation.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/1334/all-info