In this IRS administrative ruling, a corporation that intended to be taxed as a REIT owned properties that it leased out via a triple-net lease on which the tenants would produce harvestable crops. To qualify as a REIT, a requirement (contained in I.R.C. Sec. 856(c)(4)(A)) is that at the close of each quarter of the tax year, at least 75% of the value of a REIT's total assets must be real estate (including interests in real estate), cash (and cash items) and government securities. IRS noted that Treas. Reg. 1.856-3(d) defines real property as land or improvements thereon and disregards the treatment of such items under local law. Also, Prop. Treas. Reg. Sec. 1.856-10 (issued in May of 2014) indicates that water and air space superjacent to land and natural products and deposits that are unsevered from the land also count as "real estate" until they are severed or extracted. Thus, the commercially harvestable plants, until severed, are "real property" for REIT purposes. Priv. Ltr. Rul. 201424017 (Mar. 12, 2014).