Fillable Form 8875 - Taxable Reit Subsidiary Election (Page 2 of 2) in pdf

Form 8875 (Rev. 9-2014)

Page

When To Make the Election

If the TRS has not received its EIN by

the outstanding voting securities of

the time the return is due, enter “Applied

Corporation Y. On March 15, 2014,

The corporation and the REIT can make

for” in the space for the EIN. For more

Corporation X acquired an additional

this election at any time during the tax

details, see Pub. 583.

10% of the outstanding voting securities

year. However, the effective date of the

of Corporation Y. Under section 856(l)(2),

If the securities of a corporation are

election depends upon when Form 8875

Corporation Y will be treated as a TRS of

owned directly or indirectly by more than

is filed. See the instructions for line 11.

the REIT effective March 15, 2014. The

one electing REIT, each electing REIT

Where To File

REIT and Corporation X must jointly file a

seeking to treat the corporation as a

copy of their previously filed Form 8875

taxable REIT subsidiary must file a

File Form 8875 with the:

marked “Automatic Taxable REIT

separate Form 8875.

Department of the Treasury

Subsidiary” at the top and attach a

Line 11

Internal Revenue Service

statement including the name and EIN of

Ogden, UT 84201

Corporation Y within 30 days of the end

The effective date of the TRS election

of the quarter of the REIT’s tax year in

Do not attach it to the corporation’s or

entered on line 11 cannot be more than:

which Corporation Y became a TRS.

REIT’s tax returns.

1. Two months and 15 days prior to

Signature

Revocation of Election

the date of filing the election or

2. Twelve months after the date of

Form 8875 must be signed by persons

Once the TRS election is made, it is

filing the election.

authorized to sign the tax returns of the

irrevocable unless both the corporation

TRS and the electing REIT.

and the REIT consent to the revocation.

If the election specifies a date earlier

Notify the IRS of the revocation by jointly

than the date in 1 above, it will be

filing a new Form 8875, and writing the

Paperwork Reduction Act Notice. We

treated as being effective 2 months and

word “REVOCATION” across the top of

15 days prior to the date of filing the

ask for the information on this form to

the form. Complete Parts I and II and

election. If the election specifies a date

carry out the Internal Revenue laws of

provide both signatures. This revocation

later than the date in 2 above, it will be

the United States. You are required to

does not require IRS consent. The

treated as being effective 12 months

give us the information. We need it to

revocation is effective on the date the

after the date of filing the election.

ensure that you are complying with these

new Form 8875 is filed.

laws.

If no date is specified, the election is

If the employer identification number

effective on the date Form 8875 is filed.

You are not required to provide the

(EIN) of the TRS changes as a result of a

information requested on a form that is

Line 16

change in status (for example, a merger),

subject to the Paperwork Reduction Act

the election is automatically terminated.

A TRS that directly or indirectly owns

unless the form displays a valid OMB

A new election must be made using the

35% of the total voting power or value of

control number. Books or records

new EIN.

the outstanding securities of a

relating to a form or its instructions must

corporation (other than a REIT) must

be retained as long as their contents

Specific Instructions

attach a statement to Form 8875 with

may become material in the

the name and EIN of that corporation.

administration of any Internal Revenue

Address

Under section 856(l), this corporation

law. Generally, tax returns and return

also will be treated as a TRS of the REIT

information are confidential, as required

Include the suite, room, or other unit

named in Part II.

by section 6103.

number after the street address. If the

If at the time that an election is filed on

The time needed to complete and file

Post Office does not deliver to the street

Form 8875, the TRS named in Part I

this form will vary depending on

address and the corporation has a P.O.

directly or indirectly owns less than 35%

individual circumstances. The estimated

box, show the box number instead of the

of the total voting power or value of the

average time is:

street address.

outstanding securities of another

Recordkeeping .

. 6 hr., 56 min.

If the electing REIT has the same

corporation and subsequently acquires

address as the TRS, enter “Same as

Learning about the

securities in that corporation that will

corporation” in Part II.

law or the form .

. 18 min.

result in an ownership interest of 35% or

If either the TRS or the electing REIT

Preparing, copying, and

more, the TRS and REIT that filed Form

changes its mailing address or

sending the form to

8875 must file a copy of Form 8875

responsible party after the election is

the IRS

. 25 min.

marked “Automatic Taxable REIT

filed, it should notify the IRS by filing

Subsidiary” at the top of the form and

If you have comments concerning the

Form 8822-B, Change of Address or

attach a statement including the name

accuracy of these time estimates or

Responsible Party—Business.

and EIN of the new lower tier TRS. The

suggestions for making this form

Employer Identification

new Form 8875 must be filed in the

simpler, we would be happy to hear from

same manner as the original Form 8875

you. You can write to the Internal

Number (EIN)

within 30 days of the end of the quarter

Revenue Service, Tax Forms and

of the REIT’s tax year in which the lower

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

Publications Division, 1111 Constitution

tier corporation became a TRS.

have an EIN, it must apply for one. An

Ave., NW, IR-6526, Washington, DC

EIN can be applied for:

If the 35% interest is not the result of

20224.

an acquisition, no filing is necessary.

• Online—Click on the Employer ID

Do not send the form to this address.

Numbers link at

Instead, see Where To File above.

Example. REIT and Corporation X

The EIN is issued immediately once the

jointly filed Form 8875 on January 15,

application information is validated.

2014, with an effective date of January

• By mailing or faxing Form SS-4,

1, 2014. On the date that Form 8875

Application for Employer Identification

was filed, Corporation X owned 30% of

Number.

Form 8875 - Taxable Reit Subsidiary Election Page 2

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