Instructions For Form 1120-Reit - 2010 (Page 2 of 17) in pdf

handling fee) or call 1-877-233-6767 toll

Where To File

free to buy the DVD for $30 (plus a $6

handling fee).

File the REIT’s return at the applicable IRS address listed below.

By phone and in person. You can

order forms and publications by calling

If the REIT’s principal

And the total assets at

Use the following address:

1-800-TAX-FORM (1-800-829-3676). You

business, office, or agency the end of the tax year

can also get most forms and publications

is located in:

are:

at your local IRS office.

Connecticut, Delaware,

Department of the Treasury

District of Columbia, Georgia,

Less than $10 million

Internal Revenue Service Center

Illinois, Indiana, Kentucky,

Cincinnati, OH 45999-0012

General Instructions

Maine, Maryland,

Massachusetts, Michigan,

Purpose of Form

New Hampshire, New Jersey,

New York, North Carolina,

Use Form 1120-REIT, U.S. Income Tax

Ohio, Pennsylvania, Rhode

Return for Real Estate Investment Trusts,

Island, South Carolina,

Department of the Treasury

to report the income, gains, losses,

Tennessee, Vermont,

$10 million or more

Internal Revenue Service Center

deductions, credits, certain penalties, and

Virginia, West Virginia,

Ogden, UT 84201-0012

to figure the income tax liability of a REIT.

Wisconsin

Who Must File

Alabama, Alaska, Arizona,

Arkansas, California,

A corporation, trust, or association that

Colorado, Florida, Hawaii,

meets certain conditions (discussed

Idaho, Iowa, Kansas,

below) must file Form 1120-REIT if it

Louisiana, Minnesota,

Department of the Treasury

elects to be treated as a REIT for the tax

Mississippi, Missouri,

Any amount

Internal Revenue Service Center

year (or has made that election for a prior

Montana, Nebraska, Nevada,

Ogden, UT 84201-0012

tax year and the election has not been

New Mexico, North Dakota,

terminated or revoked). The election is

Oklahoma, Oregon, South

Dakota, Texas, Utah,

made by figuring taxable income as a

Washington, Wyoming

REIT on Form 1120-REIT.

Internal Revenue Service Center

General Requirements To

A foreign country or U.S.

Any amount

P.O. Box 409101

possession

Qualify as a REIT

Ogden, UT 84409

To qualify as a REIT, an organization:

A group of corporations with members located in more than one service center area

•

Must be a corporation, trust, or

will often keep all the books and records at the principal office of the managing

association.

corporation. In this case, the tax returns of the corporations may be filed with the

•

Must be managed by one or more

service center for the area in which the principal office of the managing corporation is

trustees or directors.

located.

•

Must have beneficial ownership (a)

evidenced by transferable shares, or by

For this purpose, distributions are

The organization may revoke the

transferable certificates of beneficial

treated as made from the earliest

election for any tax year after the 1st tax

interest; and (b) held by 100 or more

earnings and profits accumulated in any

year the election is effective by filing a

persons. (The REIT does not have to

non-REIT tax year. See section 857(d)(3).

statement with the service center where it

meet this requirement until its 2nd tax

•

files its income tax return. The statement

The organization must adopt a

year.)

must be filed on or before the 90th day

•

calendar tax year unless it first qualified

Would otherwise be taxed as a

after the 1st day of the tax year for which

for REIT status before October 5, 1976.

domestic corporation.

•

the revocation is to be effective. The

•

The deduction for dividends paid

Must be neither a financial institution

statement must include the following:

(excluding net capital gain dividends, if

(referred to in section 582(c)(2)), nor a

•

The name, address, and employer

any) must equal or exceed:

subchapter L insurance company.

identification number of the organization;

•

Cannot be closely held, as defined in

1. 90% of the REIT’s taxable income

•

The tax year for which the election was

section 856(h). (The REIT does not have

(excluding the deduction for dividends

made;

to meet this requirement until its 2nd tax

paid and any net capital gain); plus

•

A statement that the organization

year.)

2. 90% of the excess of the REIT’s

(according to section 856(g)(2)) revokes

net income from foreclosure property over

If a REIT meets the requirement for

its election under section 856(c)(1) to be

the tax imposed on that income by

ascertaining actual ownership (see

a REIT; and

section 857(b)(4)(A); less

Regulations section 1.857-8 for details),

•

The signature of an official authorized

and did not know (after exercising

3. Any excess noncash income as

to sign the income tax return of the

reasonable diligence), or have reason to

determined under section 857(e).

organization.

know, that it was closely held, it will be

See sections 856 and 857, and the

treated as meeting the requirement that it

The organization may not make a new

related regulations for details and

is not closely held.

election to be taxed as a REIT during the

exceptions.

4 years following the 1st year for which

Other Requirements

the termination or revocation is effective.

Termination of Election

See section 856(g)(4) for exceptions.

The gross income and diversification of

investment requirements of section 856(c)

The election to be treated as a REIT

Taxable REIT Subsidiaries

must be met. The organization must:

remains in effect until terminated,

•

Have been treated as a REIT for all tax

revoked, or the REIT has failed to meet

(TRS)

years beginning after February 28, 1986,

the requirements of the statutory relief

provisions. It terminates automatically for

A REIT may own up to 100% of the stock

•

Had, at the end of the tax year, no

any tax year in which the corporation,

in one or more taxable REIT subsidiaries

accumulated earnings and profits from

trust, or association is not a qualified

(TRS). A TRS must be a corporation

any tax year that it was not a REIT.

REIT.

(other than a REIT or a qualified REIT

-2-

Instructions For Form 1120-Reit - 2010 Page 2

Related Articles

Related forms

Related Categories