What is umbrella partnership?
An Umbrella Partnership Real Estate Investment Trust (UPREIT) is a partnership formed between the owner of appreciated real estate and a REIT whereby the owner of the appreciated real estate contributes the real estate assets in exchange for operating partnership units (OP units) in a tax deferred exchange similar to a
What is the difference between a REIT and an Upreit?
An UPREIT is an REIT under all standard accounting and tax guidelines. UPREITs were created to allow for the contribution of property into the REIT in exchange for ownership shares. This structuring is therefore guided by the standards of IRC Section 721 which discusses tax shields for property to share exchanges.
Can a partnership be a REIT?
A real estate investment trust (REIT) is not a limited partnership, though they are treated similarly for taxation purposes. REITs and limited partnerships can both avoid double taxation due to their respective business structures. However, the two entities differ in most other ways, including their investment focus.