Extract to table

an acquisition of a trade or business in which the purchaser's basis in the acquired assets is determined by reference to the consideration paid), the purchase price must be allocated among the acquired assets using the residual method prescribed in Treasury Regulations Section 1

Draft IRS Form 8594 (Asset Acquisition Statement Under Section 1060) must be prepared and filed by both the Buyer and the Seller with their respective federal income tax returns for the taxable year in which the acquisition occurs

At the close of each calendar quarter, at least 75% of the value of a REIT's total assets must consist of real estate assets (as defined in Section 856(c)(5)(B)), cash and cash items (including receivables), and government securities

For this rental income to qualify under the 75% gross income test, it must constitute "rents from real property" as defined in Section 856(d) of the Code

Services provided by Fairwater Property Management LLC (such as maintenance, repair, landscaping, janitorial, and security services) must be "customarily furnished or rendered" in connection with the rental of logistics, industrial, and office properties in the relevant Sun Belt markets

The increased rental income will require corresponding increased distributions, which must be reflected in Fairwater's dividend planning for the taxable year of acquisition and subsequent years