Viewing Question: What does an upREIT transaction involve?

What does an upREIT transaction involve?

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I own a building and I’ve taken a lot of depreciation against it. I want to get out of it without paying taxes and I’ve read about doing an upREIT transaction. What are the steps to do this?

1 Response

  1. UPREITs can be very complicated – you definitely need to talk to a professional accountant and real estate advisor about this.

    The first thing you need to do is to make sure this is a viable option for you to begin with. In an UPREIT you exchange your property for shares in a REIT. There are a lot of different REITs out there and many of them are UPREITs, however they don’t automatically take properties whenever they’re offered. You have to find a REIT that operates in the region and type of property you’re looking to sell. Also, depending on the value of the property it may or may not be of interest to the REITs.

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