In March, real estate and finance professionals gathered in Florida for the 2026 REITwise Conference for thoughtful discussions and updates on accounting, finance, tax, policy, and operational matters impacting real estate investment trust (REIT) and related investment structures. Our team from Forvis Mazars appreciated the opportunity to connect with clients, colleagues, and peers while engaging in developments that continue to influence real estate planning and compliance. The sessions offered practical guidance and crucial perspectives that many attendees are already considering in their daily work.
Below is a summary of key presentation topics and other insights our team found helpful beyond the conference walls.
Political & Legislative Developments to Consider While Planning
The opening general session focused on the broader political environment and its potential implications for tax and regulatory activity. Speakers discussed long‑term trends in midterm elections, Congress structure and influences, and policy priorities shaping affordability, healthcare, tariffs, workforce/employment issues, and immigration enforcement. While the discussion did not point to specific outcomes, it reinforced the importance of staying alert to policy shifts and the overall landscape that may affect real estate and capital markets.
Federal attention to crypto and digital assets was also mentioned. Recent legislative activity (namely the GENIUS Act (passed on July 18, 2025) and the Clarity Act) aimed at establishing regulatory frameworks for payment stablecoins and clarifying federal oversight continues to draw interest from real estate organizations evaluating (potentially antiquated) payment systems, AI applications in real estate fund operations, treasury functions, deal sourcing, and emerging technologies.
State & Local Tax (SALT) Issues Continue to Evolve
State and local tax sessions highlighted how aggressively states are asserting economic nexus, i.e., the legal connection a business creates with a state by earning revenue or completing sales there,1 often based solely on receipts from customers within their borders. Many real estate professionals are focusing on interest income from borrowers and/or assets located in a state (even when there is no physical presence in that state). In addition, several states now treat mortgage lenders, servicers, and certain investment entities as financial institutions. This can trigger specialized apportionment rules, minimum taxes, or filing requirements that must be taken into consideration.
Speakers emphasized the significant differences among states when it comes to income sourcing. Variations between market‑based sourcing and cost‑of‑performance approaches can significantly affect where interest and fee income from loan portfolios is sourced. This remains a significant issue for mortgage REITs and debt funds with multi‑state borrowers. As economic nexus standards grow, it is becoming more common for audits targeting unreported interest income to occur. Thus, nexus studies are rising in popularity so that businesses can understand their tax obligations in states where they operate but are not registered.
The session also touched on state‑specific developments, including bonus depreciation decoupling in several jurisdictions and proposed New York City tax changes that could impact certain taxpayers and real estate business structures.
IRS Guidance & Cross‑Border Matters
Government relations sessions reviewed several private letter rulings issued over the past year that addressed recurring REIT questions. Topics such as the treatment of hedging income, electricity provided to tenants through EV charging stations, carbon sequestration income, zoning density certificates, consent dividends in liquidation years, and the treatment of certain forfeited deposits and legal settlements under gross income tests were covered. While private letter rulings are limited to their facts, the discussion provided insight into current IRS thinking on qualifying income and asset issues—all of which are critical for real estate businesses and their finance professionals.
Cross‑border sessions focused on proposed Foreign Investment in Real Property Tax Act (FIRPTA) regulations issued in October 2025. These proposals effectively withdrew the look‑through approach from April 2024 and returned to a framework that is more consistent with previous practices. In addition, taxpayers and withholding agents may rely retroactively on the proposed regulations for transactions occurring on or after April 25, 2024, which reduces uncertainty for certain structures.
Don’t Count Out Operational & Emerging Tax Issues
Operational tax discussions revisited the use of taxable REIT subsidiaries to address noncustomary services, dealer property considerations, related‑party rents, securities test limitations, and intercompany pricing. Speakers noted that transfer pricing continues to receive attention, particularly when there are significant transactions between a REIT and its affiliates.
Emerging issue sessions addressed short‑term rents, power generation, and electricity sales. Presenters reviewed the IRS position that rents for space used for fewer than 30 days generally do not qualify for the 75% and 95% gross income tests, along with alternative viewpoints based on older rulings that some taxpayers continue to evaluate. Solar assets, net metering safe harbors, and the distinction between electricity sold to tenants versus third parties were top-of-mind power-related discussions (all of which can affect income and asset test considerations).
Ongoing Developments: Partnership Structures & Opportunity Zones
These sessions explored common deal terms, allocation methods, and Section 704(b) considerations among attendees. A recurring presentation theme was how liquidation provisions and targeted allocation waterfalls can affect safe harbor compliance. These topics require careful attention to capital account maintenance and the underlying economic arrangement among partners.
Opportunity zone sessions explored the different ways REITs can participate, including investing in qualified opportunity funds, serving as a sponsor or partner, or operating as a qualified opportunity zone business. Planning related to opportunity zones remains highly nuanced and detail oriented, specifically with recent legislation clarifying holding periods, gain deferral timing, and long-term appreciation treatment.
How Forvis Mazars Can Help
The conversations at REITwise reflected the growing complexity facing REITs and real estate investment vehicles, particularly as tax, regulatory, and operational considerations continue to intersect. The real estate team at Forvis Mazars support organizations as they work through these issues, including structuring considerations, state and local tax exposure, income characterization questions, cross‑border matters, and transaction planning. Through collaboration and a forward‑looking perspective, our professionals assist companies as they navigate change and plan for what’s next.
For more information, reach out to a professional at Forvis Mazars.
- 1“What Is an Economic Nexus? Definition, Thresholds, and Rules,” legalclarity.org, March 4, 2026.