Laws, Regulations & Annotations

C

220.0000 CHANGE IN OWNERSHIP

Annotation 220.0573

220.0573 Real Estate Investment Trust Election. A limited liability company (LLC), which owns real property and has as its members a pension fund (95 percent) and a corporation (5 percent), proposes to make an election with the Internal Revenue Service (IRS) to be treated as a "real estate investment trust" (REIT) for federal income tax purposes. A REIT is defined in Internal Revenue Code section 856 as an entity that would be taxable as a domestic corporation (but for its treatment as a REIT) for federal income tax purposes and that meets a number of organizational, operational, and distribution requirements. Since a REIT election with IRS is only a federal income tax treatment election, the LLC will continue to hold the real property after the REIT election, and the REIT election involves no formation of any new entity or any transfer of an entity interest or real property, thus, the REIT election will not result in a change in ownership of any real property owned by LLC. C 1/28/2015.