On April 24, 2024, the Internal Revenue Service and the Treasury Department released final regulations for determining whether a REIT qualifies as a “domestically controlled REIT”. The final regulations retain the application of a controversial look-through rule set forth in the proposed regulations issued in December 2022 but increase the threshold of foreign ownership required to look through a domestic C corporation that owns a REIT from 25% or more to more than 50%. Further, the final regulations provide a ten-year transition rule for the application of the look-through rule to existing REIT structures.