Arlington Asset Investment Corp.'s board approved a plan to change the company's federal tax classification to a real estate investment trust.
"With the expectation that Arlington would utilize its net operating loss carryforwards as a C corporation in 2019, the [board] believes that the company's plan to elect to be taxed as a REIT is the best long-term tax structure for both Arlington and its shareholders," said J. Rock Tonkel Jr., the company's President and CEO. "Remaining tax loss carryforwards upon REIT conversion will continue to be available to the Company as a REIT."
The change will take effect in the taxable year ending Dec. 31, 2019.
Hunton Andrews Kurth LLP provided legal opinion to Arlington Asset Investment on this matter.