Path for Skirting U.S. Taxes Widens With REIT Blueprint - Bloomberg

Path for Skirting U.S. Taxes Widens With REIT Blueprint - Bloomberg: "The shares of the biggest U.S. phone companies, including AT&T Inc. (T) and Verizon Communications Inc. (VZ), rose today amid prospects the Internal Revenue Service will allow them to pursue another tactic: placing some operations in tax-advantaged vehicles known as real estate investment trusts, or REITS. Last week, shares of containerboard makers such as International Paper Co. (IP) soared on speculation they will use another tax-free structure known as a master limited partnership, or MLP.

Companies are finding all kinds of ways to escape America’s 35 percent corporate rate, from acquiring a mailbox in Ireland to using a 54-year-old tax break originally meant to allow middle-class people to invest in real estate.

The use of foreign addresses, known as “inversion,” is getting increasing attention in Washington this year as corporations like Pfizer Inc. (PFE) and Walgreen Co. (WAG) consider such a move. Congressional Democrats held a press conference today to announce a new proposal to deny government contracts to some inverted companies, and Obama last week labeled such companies “corporate deserters.” Orrin Hatch, the top Republican on the Senate Finance Committee, said last week he may be open to short-term action to address inversions."



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