Instructions For Form 1120-Reit - 2006 (Page 5 of 13) in pdf

Form 5472, Information Return of a 25%

income tax liability of the REIT is affected by its

Specific Instructions

Foreign-Owned U.S. Corporation or a Foreign

participation in the transaction. The following

Corporation Engaged in a U.S. Trade or

are reportable transactions.

Business. This form is filed if the REIT is 25%

1. Any listed transaction, which is a

Period Covered

or more foreign owned. See the instructions for

transaction that is the same as, or substantially

Question 5, Schedule K, on page 12.

File the 2006 return for calendar year 2006 and

similar to, a tax avoidance transaction

fiscal years that begin in 2006 and end in 2007.

Form 8275, Disclosure Statement, and Form

identified by the IRS.

For a fiscal year return, fill in the tax year

8275-R, Regulation Disclosure Statement, are

2. Any transaction offered under conditions

space at the top of the form.

used to disclose items or positions taken on a

of confidentiality for which the REIT paid an

tax return that are not otherwise adequately

Note. The 2006 Form 1120-REIT can also be

advisor a fee of at least $250,000.

disclosed on a tax return or that are contrary to

used if:

3. Certain transactions for which the REIT

Treasury regulations (to avoid parts of the

•

has contractual protection against disallowance

The REIT has a tax year of less than 12

accuracy-related penalty or certain preparer

of the tax benefits.

penalties).

months that begins and ends in 2007 and

•

4. Certain transactions resulting in a loss

The 2007 Form 1120-REIT is not available

Form 8300, Report of Cash Payments Over

of at least $10 million in any single year or $20

at the time the REIT is required to file its return.

$10,000 Received in a Trade or Business. Use

million in any combination of years.

this form to report the receipt of more than

The REIT must show its 2007 tax year on

5. Certain transactions resulting in a

$10,000 in cash or foreign currency in one

the 2006 Form 1120-REIT and take into

book-tax difference of more than $10 million on

transaction or a series of related transactions.

account any tax law changes that are effective

a gross basis.

for tax years beginning after December 31,

Form 8612, Return of Excise Tax on

6. Certain transactions resulting in a tax

2006.

Undistributed Income of Real Estate

credit of more than $250,000, if the REIT held

Investment Trusts, is filed if the REIT is liable

the asset generating the credit for 45 days or

Name and Address

for the 4% excise tax on undistributed income

less.

imposed under section 4981.

Type or print the REIT’s true name (as set forth

Form 8621, Return by a Shareholder of a

in the charter or other legal document creating

Passive Foreign Investment Company or

Note. The REIT may have to pay a penalty if it

it) and address on the appropriate lines.

Qualified Electing Fund. Use this form to make

is required to file Form 8886 and fails to do so.

Include the suite, room, or other unit number

certain elections by shareholders in a passive

See the Instructions for Form 8886 for details

after the street address. If the Post Office does

foreign investment company and to figure

and filing requirements.

not deliver mail to the street address and the

certain deferred taxes.

REIT has a P.O. box, show the box number

instead.

Form 8842, Election To Use Different

Statements

Annualization Periods for Corporate Estimated

If the REIT receives its mail in care of a

Tax, is filed to elect one of the annualization

third party (such as an accountant or an

Transfers to a corporation controlled by the

periods in section 6655(e)(2)(C) to figure

attorney), enter on the street address line “C/

transferor. If a person receives stock of a

estimated tax payments under the annualized

O” followed by the third party’s name and

corporation in exchange for property, and no

income installment method.

street address or P.O. box.

gain or loss is recognized under section 351,

Form 8865, Return of U.S. Persons With

the person (transferor) and the transferee must

Respect To Certain Foreign Partnerships. A

Item B. 100%-owned

each attach to their tax returns the information

REIT may have to file Form 8865 if it:

required by Regulations section 1.351-3.

Subsidiaries and Personal

1. Controlled a foreign partnership (i.e.,

owned more than a 50% direct or indirect

Reportable transactions by material

Holding Companies

interest in the partnership).

advisors. Until further guidance is issued,

2. Owned at least a 10% direct or indirect

material advisors who provide material aid,

REITs with 100%-owned

interest in a foreign partnership while U.S.

assistance, or advice with respect to any

Subsidiaries

persons controlled that partnership.

reportable transaction, must use Form 8264,

3. Had an acquisition, disposition, or

Check this box if this return is filed for a REIT

Application for Registration of a Tax Shelter, to

change in proportional interest in a foreign

with 100%-owned REIT subsidiaries under

disclose reportable transactions in accordance

partnership that:

section 856(i). These subsidiaries are not

with interim guidance provided in Notice

•

Increased its direct interest to at least

treated as separate corporations.

2004-80, 2004-50 I.R.B. 963; Notice 2005-17,

10% or reduced its direct interest of at least

2005-8 I.R.B. 606; and Notice 2005-22,

Do not check this box for a taxable REIT

10% to less than 10%.

2005-12 I.R.B. 756.

•

subsidiary. See the instructions for Taxable

Changed its direct interest by at least a

REIT Subsidiaries.

10% interest.

Dual consolidated losses. If a domestic

4. Contributed property to a foreign

corporation incurs a dual consolidated loss (as

Personal Holding Companies

partnership in exchange for a partnership

defined in Regulations section 1.1503-2(c)(5)),

Personal holding companies must attach to

interest if:

the corporation (or consolidated group) may

•

Form 1120-REIT a Schedule PH (Form 1120),

Immediately after the contribution, the

need to attach an elective relief agreement

U.S. Personal Holding Company (PHC) Tax.

REIT owned, directly or indirectly, at least a

and/or an annual certification as provided in

See the instructions for that form for details.

10% interest in the foreign partnership; or

Temporary Regulations section

•

The FMV of the property the REIT

1.1503-2T(g)(2).

Item C. Employer

contributed to the foreign partnership in

exchange for a partnership interest, when

Election to reduce basis under section

Identification Number (EIN)

added to other contributions of property made

362(e)(2)(C). The transferor and transferee in

to the foreign partnership during the preceding

Enter the REIT’s EIN. If the REIT does not

certain section 351 transactions can make a

12-month period, exceeds $100,000.

have an EIN, it must apply for one. An EIN may

joint election under section 362(e)(2)(C) to limit

Also, the REIT may have to file Form 8865

be applied for:

the transferor’s basis in the stock received

•

to report certain dispositions by a foreign

Online — Click on the EIN link at

instead of the transferee’s basis in the

partnership of property it previously contributed

gov/businesses/small. The EIN is issued

transferred property. The transferor and

to that foreign partnership if it was a partner at

immediately once the application information is

transferee may make the election by attaching

the time of the disposition. For more details,

validated.

the statement as provided in Notice 2005-70,

•

including penalties for failing to file Form 8865,

By telephone at 1-800-829-4933 from 7:00

2005-41 I.R.B. 694, to their tax returns filed by

see Form 8865 and its separate instructions.

a.m. to 10:00 p.m. Monday through Friday in

the due date (including extensions) for the tax

the REIT’s local time zone.

Form 8875, Taxable REIT Subsidiary Election,

•

year in which the transaction occurred. Once

By mailing or faxing Form SS-4, Application

is filed jointly by a corporation and a REIT to

made, the election is irrevocable. See section

for Employer Identification Number.

have the corporation treated as a taxable REIT

362(e)(2)(C) and Notice 2005-70.

If the REIT has not received its EIN by the

subsidiary.

time the return is due, enter “Applied for” in the

Other forms and statements. See Pub. 542

Form 8886, Reportable Transaction

space for the EIN. See Pub. 583 for details.

for a list of other forms and statements a

Disclosure Statement. Use this form to disclose

corporation may need to file in addition to the

information for each reportable transaction in

Note. The online application process is not yet

forms and statements discussed throughout

which the REIT participated. Form 8886 must

available for REITs with addresses in foreign

these instructions.

be filed for each tax year that the federal

countries or Puerto Rico.

-5-

Instructions For Form 1120-Reit - 2006 Page 5

Related Articles

Related forms

Related Categories