John Baron is the lead partner of the Charlotte office’s Federal and International Tax Group and partner-in-charge of the Charlotte office. His practice is principally transactional in nature, and his clients include both domestic and foreign companies and financial institutions, as well as private equity firms, CDOs and hedge funds. He regularly provides tax structuring advice and renders tax opinions with respect to mergers and acquisitions, structured finance transactions, securitizations involving REMICS, grantor trusts and CDOs, and cross-border financings.
John was recognized in The Best Lawyers in America and Super Lawyers magazine, and was also named to Business North Carolina magazine’s “Legal Elite” in tax. He is a member of the Tax Section of the New York Bar Association, the International Fiscal Association (treasurer, Carolinas Chapter) and CREFC REMIC Task Force. John received his J.D. from Seton Hall University in 1987 and his LL.M. in taxation from New York University in 1990. He received his B.A. in 1984 from the University of Delaware. He is admitted to practice in North Carolina, New York and New Jersey.
- Structuring mergers, acquisitions and joint ventures, including the use of tax-favored “pass-through” entities.
- Inbound and outbound international transactions.
- Tax structuring and issuance of opinions relating to various financial transactions, including tax aspects of debt and equity securities offerings.
- Tax aspects of real estate transactions, including like-kind exchanges, installment sales, structured financing arrangements and transfers involving REITs and REMICs.
- Tax aspects of offshore investment funds.
A Real Estate Mortgage Investment Conduit (REMIC) is an entity employed to securitize loans secured by real property and that has been granted tax-favored status. In the current economic environment, due to the fact that they hold primarily commercial or residential mortgages, REMICs are commonly faced with workouts of troubled loans. The tax rules that apply to REMICs place restrictions on the activities of a REMIC and the assets a REMIC can hold without risking its tax-favored status. These rules apply to performing and nonperforming loans alike, and therefore restrict when, how and what a REMIC can hold when it forecloses on a loan. The tax rules relating to foreclosure property held by a REMIC, discussed in this advisory, are intended to prevent a REMIC from engaging in activities that are the equivalent of operating a business.
March 6, 2012