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Reduced Cash Requirement in Part Stock and Part Cash Dividends: New IRS Guidance on RIC and REIT Distributions  

Author:  Joseph A. Riley.; Kalina Hannsz.; Ari M. Zak.; Mansi Seth.

Source: Volume 39, Number 02, Winter 2022 , pp.43-46(4)

Journal of Taxation of Investments

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Recently issued Revenue Procedure 2021-53 temporarily allows regulated investment companies (RICs) and publicly offered real estate investment trusts (REITs) to limit the cash component of their dividends under certain conditions, in order to allow RICs and REITs to conserve capital and enhance their cash liquidity during the COVID-19 pandemic. The authors set out the eligibility requirements and discuss related legal concerns.

Keywords: regulated investment companies, real estate investment trusts, Rev. Proc. 2021-53, annual distribution requirement

Affiliations:  1: Dechert LLP ; 2: Dechert LLP ; 3: Dechert LLP ; 4: Dechert LLP .

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