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Tax Changes: Increased Flexibility for Real Estate Investment Trusts.

This new law increases the limit on assets that Real Estate Investment Trusts (REITs) can hold in their taxable subsidiaries. This provides greater flexibility for these funds in managing their investments, which may impact the real estate market and indirectly affect the availability and prices of housing and commercial properties. The changes will take effect from 2026.
Key points
The asset limit for REITs in taxable subsidiaries increases from 20% to 25%.
This change grants real estate funds greater flexibility in structuring their investments.
The new rules will apply to taxable years beginning after December 31, 2025.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_S_1334
Sponsor: Sen. Tillis, Thomas [R-NC]
Process start date: 2025-04-08
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Summarized by: gemini-2.5-flash
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

A bill to amend the Internal Revenue Code of 1986 to increase the percentage limitation on assets of real estate investment trusts which may be held in taxable REIT subsidiaries.

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_S_1334.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2025-04-08.

What are the main provisions?

Key points include:

  • The asset limit for REITs in taxable subsidiaries increases from 20% to 25%.
  • This change grants real estate funds greater flexibility in structuring their investments.
  • The new rules will apply to taxable years beginning after December 31, 2025.
What is the specific legal status?

The current status is Introduced.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Tillis, Thomas [R-NC].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-23.

CATEGORIES

Taxes Real Estate Economy