Henry Stow Lovejoy will participate in a panel titled "Equity-Based Mortgages – Debt/Equity/Derivatives Or A Combination Thereof?" at the 2018 ABA Taxation Section Midyear Meeting

A growing number of lenders offer mortgages that are designed to share the risk and reward of depreciation/appreciation in real estate values between the lender and borrower. For the borrower to deduct payments as mortgage interest, the instrument must be a debt instrument secured by real estate.

Similarly, for the instrument to be treated as “interest in real property” (so that it can be held in a REMIC or REIT), the instrument must constitute debt. Nevertheless, the equity-based products generally comprise of: (1) traditional debt with low fixed interest, (2) contingent interest, and (3) total return swap. This panel will discuss the issues surrounding these three components; whether the products should be bifurcated or integrated, and how each of the borrower and lender should treat them.

Click here to register for this event. 

WHEN
February 09, 2018 at 8:15am - 9:15am
WHERE
Hilton Bayfront
1 Park Blvd
San Diego, CA 92101
United States
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