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Sarah Wellings and Daniel Ryan were quoted in the article "Attys Tout 3 Real Estate Investment Wins In Federal Budget," published by Law360 Real Estate Authority [sub. req'd] on July 16, 2025. The article highlights several real estate–related provisions in the newly enacted “One Big Beautiful Bill Act,” which contains significant tax updates impacting real estate investors, REITs, and Opportunity Zones.

Sarah Wellings, a partner in Sullivan’s REITs practice, addressed the removal of a proposed retaliatory tax on certain foreign investors, known to some as the “revenge tax.” If the provision had been enacted, it could have significantly increased tax exposure for foreign capital and overridden protections provided by existing tax treaties. “If you're a foreign investor, and you're modeling at a 0% tax rate, and now you think you could potentially be subject to a 50% tax rate, it completely changes your ability and your inclination to invest in U.S. real estate,” she said. Sarah also noted favorable updates for REITs and their shareholders, including an increased asset test cap for taxable REIT subsidiaries and the permanent extension of the Section 199A deduction that is available for qualified REIT dividends, which provide greater structural flexibility and tax efficiency for REITs and their investors.

Daniel Ryan, co-founder of Sullivan’s Opportunity Zones practice, discussed the program’s permanent extension and new incentives designed to encourage rural investment. Under the revised structure, investors who hold rural Opportunity Zone investments for five years may qualify for a 30% reduction in deferred capital gains tax, up from the standard 10%. Dan also highlighted the bill’s new transparency measures, which require the IRS to publish data on the scope and impact of Opportunity Zone projects. “There will be some ability to measure the effectiveness of the program,” he said. “Frankly, there was really no way for the public to know whether or not the program was working.”