Instructions For Form 1120-Reit - 2011 (Page 2 of 16) in pdf

for $30 (no

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

General Instructions

Illinois, Indiana, Kentucky,

Cincinnati, OH 45999-0012

Maine, Maryland,

Massachusetts, Michigan,

Purpose of Form

New Hampshire, New Jersey,

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

New York, North Carolina,

Return for Real Estate Investment Trusts,

Ohio, Pennsylvania, Rhode

to report the income, gains, losses,

Island, South Carolina,

Department of the Treasury

deductions, credits, certain penalties, and

Tennessee, Vermont,

$10 million or more

Internal Revenue Service Center

to figure the income tax liability of a REIT.

Virginia, West Virginia,

Ogden, UT 84201-0012

Wisconsin

Who Must File

Alabama, Alaska, Arizona,

A corporation, trust, or association that

Arkansas, California,

meets certain conditions (discussed

Colorado, Florida, Hawaii,

below) must file Form 1120-REIT if it

Idaho, Iowa, Kansas,

elects to be treated as a REIT for the tax

Louisiana, Minnesota,

Department of the Treasury

year (or has made that election for a prior

Mississippi, Missouri,

Any amount

Internal Revenue Service Center

tax year and the election has not been

Montana, Nebraska, Nevada,

Ogden, UT 84201-0012

terminated or revoked). The election is

New Mexico, North Dakota,

made by figuring taxable income as a

Oklahoma, Oregon, South

REIT on Form 1120-REIT.

Dakota, Texas, Utah,

Washington, Wyoming

General Requirements To

Internal Revenue Service Center

A foreign country or U.S.

Qualify as a REIT

Any amount

P.O. Box 409101

possession

Ogden, UT 84409

To qualify as a REIT, an organization:

•

Must be a corporation, trust, or

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

association.

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

•

Must be managed by one or more

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

trustees or directors.

•

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

Must have beneficial ownership (a)

located.

evidenced by transferable shares, or by

transferable certificates of beneficial

For this purpose, distributions are

The organization may revoke the

interest; and (b) held by 100 or more

treated as made from the earliest

election for any tax year after the 1st tax

persons. (The REIT does not have to

earnings and profits accumulated in any

year the election is effective by filing a

meet this requirement until its 2nd tax

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

statement with the service center where it

year.)

•

The organization must adopt a

files its income tax return. The statement

Would otherwise be taxed as a

calendar tax year unless it first qualified

must be filed on or before the 90th day

domestic corporation.

•

for REIT status before October 5, 1976.

after the 1st day of the tax year for which

Must be neither a financial institution

•

The deduction for dividends paid

the revocation is to be effective. The

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

(excluding net capital gain dividends, if

statement must include the following:

subchapter L insurance company.

•

any) must equal or exceed:

The name, address, and employer

Cannot be closely held, as defined in

identification number of the organization;

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

1. 90% of the REIT’s taxable income

•

The tax year for which the election was

to meet this requirement until its 2nd tax

(excluding the deduction for dividends

made;

year.)

paid and any net capital gain); plus

•

A statement that the organization

2. 90% of the excess of the REIT’s

If a REIT meets the requirement for

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

net income from foreclosure property over

ascertaining actual ownership (see

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

the tax imposed on that income by

Regulations section 1.857-8 for details),

a REIT; and

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

and did not know (after exercising

•

The signature of an official authorized

3. Any excess noncash income as

reasonable diligence), or have reason to

to sign the income tax return of the

determined under section 857(e).

know, that it was closely held, it will be

organization.

treated as meeting the requirement that it

See sections 856 and 857, and the

is not closely held.

related regulations for details and

The organization may not make a new

exceptions.

election to be taxed as a REIT during the

Other Requirements

4 years following the 1st year for which

Termination of Election

the termination or revocation is effective.

The gross income and diversification of

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

investment requirements of section 856(c)

The election to be treated as a REIT

must be met. The organization must:

remains in effect until terminated,

•

Taxable REIT Subsidiaries

Have been treated as a REIT for all tax

revoked, or the REIT has failed to meet

years beginning after February 28, 1986,

the requirements of the statutory relief

(TRS)

provisions. It terminates automatically for

•

Had, at the end of the tax year, no

any tax year in which the corporation,

A REIT may own up to 100% of the stock

accumulated earnings and profits from

trust, or association is not a qualified

in one or more taxable REIT subsidiaries

any tax year that it was not a REIT.

REIT.

(TRS). A TRS must be a corporation

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Instructions For Form 1120-Reit - 2011 Page 2

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