The IRS has provided a “temporary safe harbor” to certain arrangements organized as trusts that hold rental real property, and which are or have tenants who are experiencing financial hardship as a result of COVID-19. The IRS will allow these trusts to make certain modifications to their mortgage loans and their lease agreements and to accept additional cash contributions without jeopardizing their tax status as trusts. (Reg §301.7701-4(c); Trust Classification)
Authored by:
Dr. John Connors, JD, CPA, LLM
Tax Educator’s Network, LLC
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