How Does A Corporation Qualify To Be A REIT?
To qualify as a REIT, a corporation must comply with specific provisions of the Internal Revenue Code. The provisions include: • The entity must be a taxable corporation • The corporation must be managed by trustees or a board of directors • The entity must have fully transferrable shares • There must be at least 100 different shareholders • No more than 50 percent of the corporation’s shares can be held by five or less individuals within the last half of the taxable year.
