---
title: The Real Estate Roundtable Weekly Features Client Advisory on ‘Bad Boy’ Guarantees Written by Partner John A. Garraty
date: 2016-04-22T00:00:00-04:00
author: Import Bot
canonical_url: "https://www.kelleydrye.com/news/the-real-estate-roundtable-weekly-features-client-advisory-on-bad-boy-guarantees-written-by-partner-john-a-garraty"
section: News
---
# The *Real Estate Roundtable Weekly* Features Client Advisory on ​‘Bad Boy’ Guarantees Written by Partner John A. Garraty

 April 22, 2016

 

 

 

 

 

 

The client advisory, ​“[IRS Treatment Of ​‘Bad Boy’ Guarantees Brings Uncertainty](/News-Events/Publications/Articles/IRS-Treatment-Of-Bad-Boy-Guarantees-Brings-Uncer),” co-authored by [John A. Garraty](/Our-People/John-A-Garraty) was featured in The Real Estate Roundtable’s weekly newsletter, *Roundtable Weekly*. The article discusses the IRS’s legal memorandum that reversed their earlier opinion on ​“bad boy” loan guarantees, which threatened to alter the tax treatment of billions of dollars in outstanding commercial mortgage-backed securities and commercial real estate loans. The article states that the Kelley Drye client advisory summarizes this issue and concludes that, ​“Although withdrawal of the original Memorandum had been anticipated by the real estate industry, issuance of the New Memorandum removes a cloud over the tax treatment of carve-out guarantees.”

 

 

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