The 5-Year REIT Lockout Rule: Kill It or Fix It?

Tax Notes Federal

Nickolas Gianou David F. Levy

Partners David Levy and Nickolas Gianou and associate Christian Husby explore the ways in which the "lockout rule" — which prohibits a REIT and its successor from reelecting REIT status within five years of the termination or revocation of that status — creates unexpected and counterintuitive REIT qualification issues in otherwise routine REIT transactions.