American Tower & Crown Castle REIT status being questioned by U.S. Government

Posted August 21, 2014 by admin

Recently, the House Ways and Means Chairman Dave Camp (Michigan) has challenged the provision that allows REIT shareholders to not pay taxes on capital gains until it sells or distributes assets. This would have a direct impact for the two largest tower companies; American Tower (AMT) & Crown Castle (CCI) currently REIT’s. They would be required to pay the same tax rate as their ordinary income if this new law passes.

So what does that mean for current wireless lease holders with a cell tower or rooftop cellular sites? If the tower companies tax rate increase this would mean a reduction in price for both wireless lease rates as well as the overall value of the property. Pair this along with the risk of an interest rate movement. Current market prices for cell site location is at a all time high and although the value of cell site could move higher the tea leaves say a move lower is in order.

If you have any questions about your cell site, give us a call at let us help you to maximize your cell site asset.

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