It’s a Great Time to Be a Prison Landlord, Thanks to the IRS

REIT status saves CoreCivic, GEO Group from paying most taxes
Rules favor them building facilities rather than managing them

SANTA BARBARA, CA - JUNE 12: The Santa Barbara County Detention and Correctional Facility, one of two jails where singer Michael Jackson could be sent if the deliberating jury declares him guilty in his child molestation trial, is seen on June 12, 2005 in Santa Barbara, California. Jackson is charged in a 10-count indictment with molesting a boy, plying him with liquor and conspiring to commit child abduction, false imprisonment and extortion. (Photo by David McNew/Getty Images)Photographer: David McNew/Getty Images

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By Rob Urban and Kristy Westgard

August 9, 2018 at 5:00 AM EDT

Updated on

August 9, 2018 at 5:19 PM EDT

This article is for subscribers only.

Private-prison companies keep winning, and they have U.S. taxpayers to thank.

Not only are Americans footing the bill for detaining thousands of border-crossers, the Internal Revenue Service allows CoreCivic Inc. and GEO Group Inc. to legally avoid paying taxes on their gains.

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