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  "documentTitle": "Target Corporation (TGT)",
  "authorId": "01_Pershing_Square",
  "authorName": "William Ackman",
  "documentKindSlug": "activist-deck",
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  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2008-10-29 00:00:00",
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  "pageNumber": 43,
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  "notes": "The slide contrasts the tax treatment of land ownership versus ground leases for retailers versus REITs.",
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      "text": "As such, long-term ground leases are a more tax-efficient way for a tax-paying entity to control real estate than outright land ownership",
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      "text": "Raw land (and the majority of the capitalized costs associated with land procurement / development) cannot be depreciated\nUnlike buildings, which are depreciable and remain at Target Corp, land development has minimal offsetting tax deductibility\nHowever, ground rent is tax deductible\nAs such, long-term ground leases are a more tax-efficient way for a tax-paying entity to control real estate than outright land ownership\nUnless it is in the business of land speculation, there is no distinct strategic advantage for a retailer to own land versus a very long-term, covenant-free ground lease\nOn the other hand, a REIT should own land since (1) it is not a tax-paying entity and does not get any benefits from depreciation and (2) it is in the business of owning real estate",
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      "kind": "title",
      "text": "Optimizes Land Ownership: Depreciation Considerations",
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