Instructions For Form 1120-Reit - 2016 (Page 8 of 19) in pdf

under section 856(i). These subsidiaries

change to an “in care of” address), check

Line 2. Interest. Enter taxable interest on

are not treated as separate corporations.

the box for “Address change.”

U.S. obligations and on loans, notes,

Note. If a change in address or

mortgages, bonds, bank deposits,

Do not check this box for a taxable

responsible party occurs after the return is

corporate bonds, tax refunds, etc. Do not

REIT subsidiary. See the instructions for

filed, use Form 8822-B, Change of

offset interest expense against interest

Taxable REIT Subsidiaries, earlier.

Address or Responsible Party—Business,

income. Special rules apply to interest

Personal Holding Companies

to notify the IRS of the new address. See

income from certain below-market-rate

the Instructions for Form 8822-B for

loans. See section 7872 for details.

Personal holding companies must attach

details.

to Form 1120-REIT a Schedule PH (Form

If the REIT is amending its return, check

Note. Report tax-exempt interest income

1120), U.S. Personal Holding Company

the box for “Amended Return,” complete

on Form 1120-REIT, Schedule K, item 8.

(PHC) Tax. See the Instructions for

the entire return, correct the appropriate

Do not include tax-exempt interest on

Schedule PH (Form 1120) for details.

lines with the new information, and

line 2. Also, if required, include the same

refigure the REIT's tax liability. Attach a

Item C. Employer

amount on Schedule M-1, line 7.

statement that explains the reason for the

Include interest income from tax credit

Identification Number

amendments and identifies the lines being

bonds on line 2.

(EIN)

changed on the amended return.

Line 3. Gross rents. Include the

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

Item G. Type of REIT

following:

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

Charges for customary services that

Check the appropriate box to indicate

may be applied for:

may qualify as rents from real property are

whether you are filing a return for a

Online—Click on the Employer ID

described in Regulations section

“Mortgage REIT” or an “Equity REIT.” If

Numbers link at

1.856-4(b)(1). Services customarily

the primary source of gross receipts is

The EIN is issued immediately once the

furnished to tenants of a REIT include

derived from mortgage interest and fees,

application information is validated.

parking facilities. See Rev. Rul. 2004-24,

check the “Mortgage” box. Otherwise,

By faxing or mailing Form SS-4,

2004-10 I.R.B. 550, for guidance to

check the “Equity” box.

Application for Employer Identification

determine whether amounts received by a

Number.

REIT that provides parking facilities at its

Item H. PBA Code (Equity

rental real properties qualify as rents from

If the REIT has not received its EIN by

REITs Only)

real property.

the time the return is due, enter “Applied

Rent from personal property leased

for” in the space for the EIN. For more

Enter only one code that best reflects the

under or with a lease of real property (but

details, see the Instructions for Form

principal business activity of an equity

only if the rent from the personal property

SS-4.

REIT from the selection below:

does not exceed 15% of the total rent for

531110– Lessors of Residential

Note. REITs located in the United States

the tax year charged for both the real and

Buildings & Dwellings

or U.S. possessions can use the online

personal property under such lease).

531120– Lessors of Nonresidential

application process.

Figure the percentage of rents from

Buildings (except Miniwarehouses)

personal property by comparing the FMV

531130– Lessors of Miniwarehouses &

Item D. Date REIT

of the personal rental property to the FMV

Self-Storage Units

of the total rental property. See section

Established

531190– Lessors of Other Real Estate

856(d)(1) for details.

Property

If the REIT is a corporation under state or

Rent from a taxable REIT subsidiary

local law, enter the date incorporated. If it

(TRS) either (a) where at least 90% of the

Part I—Real Estate

is a trust or association, enter the date

space at issue is leased to third parties at

organized.

Investment Trust Taxable

rents comparable to the rent paid by the

other tenants of the REIT for comparable

Income

Item E. Total Assets

space; or (b) for certain lodging facilities or

Include in Part I the REIT's share of gross

health care property operated by an

Enter the REIT's total assets (as

income from partnerships in which the

eligible independent contractor. For more

determined by the accounting method

REIT is a partner, and the deductions

regularly used in keeping its books and

information, including definitions and

attributable to the gross income items.

records) at the end of the tax year. If there

additional requirements, see sections

See Regulations section 1.856-3(g).

856(d)(8) and 856(d)(9). Also, see Rev.

are no assets at the end of the tax year,

Proc. 2003-66, 2003-33 I.R.B. 364 for the

enter -0-.

Real estate investment trust taxable

special rules on rents paid to a REIT by

income does not include the following:

Item F. Final Return, Name

certain joint ventures that include a TRS.

Gross income, gains, losses, and

Change, Address Change,

See section 856(d)(2) for amounts

deductions from foreclosure property

excluded from “rents from real property.”

or Amended Return

(defined in section 856(e)). If the

aggregate of such amounts results in net

Line 4. Other gross rents. Enter the

If this is the REIT's final return, and it

income, report these amounts in Part II.

gross amount received for renting property

will no longer exist, check the “Final

Income or deductions from any

not included on line 3.

return” box. See the instructions for

prohibited transaction (defined in section

Termination of Election, earlier.

Line 5. Capital gain net income. Every

857(b)(6)) resulting in a gain. Report these

If the REIT has changed its name since

sale or exchange of a capital asset must

amounts in Part IV.

it last filed a return, check the box for

be reported on Schedule D (Form 1120),

Income

“Name change.” Generally, a REIT also

Capital Gains and Losses, even if there is

must have amended its articles of

no gain or loss.

Line 1. Dividends. Enter the total

incorporation and filed the amendment

amount of dividends received during the

Line 7. Other income. Enter any other

with the state in which it was incorporated.

tax year.

taxable income not reported on lines 1

If the REIT has changed its address

through 6, except amounts that must be

since it last filed a return (including a

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Instructions For Form 1120-Reit - 2016 Page 8

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