John Napoli published in New York Law Journal
“One year later, IRS remains silent on how to reconcile the disparate treatment of REITs and tax-exempt organizations”

The June 11, 2007 issue of New York Law Journal includes the article, “One year later, IRS remains silent on how to reconcile the disparate treatment of REITs and tax-exempt organizations” by John Napoli. In the article, John explains how the Internal Revenue Service in a May 2006 letter ruling that concluded that annual rental income received by a building owner from the rental of off-street parking spaces to designated tenants of its residential apartment building does not constitute unrelated business taxable income (UBTI) seems to contradict the IRS’ 2004 ruling in that income received by tax exempt organizations from unattended, unreserved parking facilities does constitute UBTI. The 2006 letter ruling, John shows, may signal the intent of the IRS to reconcile the disparate treatment in the 2004 ruling accorded to real estate investment trusts (“REITs”) and exempt organizations.