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

Tax Notes Federal

Nickolas Gianou

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.