Client Alert

IRS Rules that Interest in a Money Market Fund is a Cash Item for REITS

June 25, 2012

BY ANDREW M. SHORT, KRISTEN CHANG WINCKLER, & MATTHEW G. BRIGHAM

The Internal Revenue Service (the IRS) recently provided guidance to real estate investment trusts (a REIT), establishing that an interest in a money market fund qualifies as a cash item for purposes of the REIT asset test under Section 856(c)(4)(A) of the Internal Revenue Code of 1986, as amended (the Code).