IRS still trying to decide if tech companies can be REITs

The premier event for luxury agents and brokers
Luxury Connect | Oct. 16-18 | Beverly Hills

The IRS is still grappling with requests by two tech companies for rulings on their plans to convert to real estate investment trusts.

Redwood City, Calif.-based Equinix Inc. operates data centers in 15 countries around the world. Boston-based Iron Mountain Inc. stores, digitizes and shreds its clients’ paper records. Why would tech companies want to convert to REITs?

REITS “are subject to lower taxes and pay higher dividends than other companies,” Bloomberg News reports.

The IRS has yet to issue rulings on “the definition of real estate for purposes of REIT conversions,” Bloomberg reports, citing a regulatory filing by Iron Mountain. Source: bloomberg.com