Safe Harbor for trusts that hold rental real estate
The IRS is providing a temporary safe harbor for trusts that hold rental real estate. The safe harbor is provided for trusts that hold rental property and are experiencing financial hardship as a result of COVID-19 or have tenants who are suffering due to the pandemic. These trusts will be allowed 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. (Rev. Proc. 2020-34)
