Real estate tax update

On Jan 26, 2010, the Internal Revenue Service (IRS) released Announcement 2010-9. In Announcement 2010-9, the IRS stated that it is considering requiring certain taxpayers to make annual disclosures of uncertain tax positions taken on theft federal income tax returns. On Dec 31, 2009, the IRS released Private Letter Ruling (PLR) 200953015. In this ruling, the IRS provided guidance on stock distributions with respect to the dividends-paid deduction for Real Estate Investment Trusts (REIT). In the PLR, the taxpayer was a corporation that intended to make the REIT election on its 2009 tax return. On Jan 27, 2010, Representative Joseph Crowley introduced the Real Estate Revitalization Act of 2010 (RERA). The purpose of RERA is to amend the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA). Specifically, RERA would relax certain rules imposed by FIRPTA. On Feb 1, 2010, Pres Barack Obama submitted to Congress his budget proposals for the 2011 fiscal year.