No. of Recommendations: 1
"The provision of the REIT Act that requires that 5 or fewer shareholders cannot hold, directly or indirectly, a majority of company stock....only applies to the latter half of a given year. I've always wondered why it was written this way,"

The five shareholders not owning more than 50% is the IRS definition of a closely held company and effects not only REIT status, but can effect non-REITs as well.
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