Form 8875 – Fill Out and Use This PDF

Form 8 8 7 5 (January 2001)

Department of the Treasury Internal Revenue Service

Taxable REIT Subsidiary Election

(Under section 856(l)(1) of the Internal Revenue Code)

OMB No. 1545-1721

1 Name of taxable REIT subsidiary

2 Employer identification number (EIN)

Number, street, and room or suite no. (if a P.O. box, see instructions)

3 Date incorporated or organized

City or town, state, and ZIP code

4 State or country of incorporation or organization

General Instructions

SECTION REFERENCES ARE TO THE INTER NAL REVENUE CODE UNLESS OTHERWISE NOTED.

Purpose of Form

A corporation (other than a REIT or an ineligible corporation) and a REIT use Form 8875 to jointly elect to have the corporation treated as a taxable REIT subsidiary under section 856(l).

The corporation and the REIT can make this election if the REIT directly or indirectly owns stock in the corporation.

The election does not require IRS consent.

A corporation is ineligible to be treated as a taxable REIT subsidiary if it directly or indirectly:

●Operates or manages a lodging facility or a health care facility,

●Provides to any other person (under a franchise, license, or otherwise) rights to any brand name under which any health care facility is operated, or

●Provides to any other person (under a franchise, license, or otherwise) rights to

any brand name under which any lodging facility is operated, unless:

1.The rights are provided to an eligible independent contractor (as defined in section 856(d)(9)) to operate or manage a lodging facility,

2.The rights are held by the corporation as a franchisee, licensee, or in a similar capacity, and

3.The lodging facility is either owned by the corporation or leased by the electing REIT to the corporation.

When To Make the Election

The corporation and the REIT can make this election at any time during the tax year. However, the effective date of the election depends upon when Form 8875 is filed. See the instructions for line 11.

Where To File

File Form 8875 with the Internal Revenue Service, Ogden, UT 84201. Do not attach it to the corporation’s or REIT’s tax returns.

Revocation of Election

Once the taxable REIT subsidiary election is made, it is irrevocable unless both the corporation and the REIT consent to revocation. Notify the IRS of the revocation by jointly filing a new Form 8875, and writing the word

“REVOCATION” across the top of the form. Complete Parts I and II and provide both signatures. This revocation does not require IRS consent. The revocation is effective on the date the new Form 8875 is filed.

If the employee identification number (EIN) of the taxable REIT subsidiary changes as a result of a change in status (e.g., a merger), the election is automatically terminated. A new election must be made using the new EIN.

Specific Instructions

Address

Include the suite, room, or other unit number after the street address. If the Post Office does not deliver to the street address and the corporation has a P.O. box, show the box number instead of the street address.

If the electing REIT has the same address as the taxable REIT subsidiary, enter “ Same as corporation” in Part II.

If either the taxable REIT subsidiary or the electing REIT changes its mailing address after the election is filed, it should notify the IRS by filing Form 8822, Change of Address.

Employer Identification Number (EIN)

If the taxable REIT subsidiary does not have an EIN, see Form SS- 4, Application for Employer Identification Number, for details on how to obtain an EIN immediately by telephone.

If the taxable REIT subsidiary has applied for an EIN, but has not received it by the time the election is made, write “Applied for” on line 2.

If the securities of a corporation are owned directly or indirectly by more than

one electing REIT, each electing REIT seeking to treat the corporation as a taxable REIT subsidiary must file a separate Form 8875.

Line 11

The effective date of the taxable REIT subsidiary election entered on line 11 cannot be more than:

1.Two months and 15 days prior to the date of filing the election or

2.Twelve months after the date of filing the election.

If the election specifies a date earlier than the date in 1 above, it will be treated as being effective 2 months and 15 days prior to the date of filing the election. If the election specifies a date later than the date in 2 above, it will be treated as being effective 12 months after the date of filing the election.

If no date is specified, the election is effective on the date Form 8875 is filed.

In no event will the election apply to any tax year of the electing REIT beginning before January 1, 2001.

Line 16

A taxable REIT subsidiary that directly or indirectly owns 35% of the total voting power or value of the outstanding securities of a corporation (other than a REIT) must attach a statement to Form 8875 with the name and EIN of that corporation. Under section 856(l), this corporation also will be treated as a taxable REIT subsidiary of the REIT named in Part II.

If at the time that an election is filed on Form 8875 the taxable REIT subsidiary named in Part I directly or indirectly owns less than 35% of the total voting power or value of the outstanding securities of another corporation and subsequently acquires securities in that corporation that will result in an ownership interest of 35% or more, the taxable REIT subsidiary and REIT that filed Form 8875 must file a copy of Form 8875 marked “Automatic Taxable REIT Subsidiary” at the top of the form and attach a statement including the name and EIN of the new lower tier taxable REIT subsidiary. The new Form 8875 must be filed in the same manner as the original Form 8875 within 30 days of the end of the quarter of the REIT’s tax year in which the lower tier corporation became a taxable REIT subsidiary.

If the 35% interest is not the result of an acquisition, no filing is necessary.

Example. REIT and Corporation X jointly filed Form 8875 on January 15, 2001, with an effective date of January 1,

2001. On the date that Form 8875 was filed, Corporation X owned 30 percent of the outstanding voting securities of Corporation Y. On March 15, 2001, Corporation X acquired an additional 10 percent of the outstanding voting securities of Corporation Y. Under section 856(l)(2), Corporation Y will be treated as a taxable REIT subsidiary of the REIT effective March 15, 2001. The REIT and Corporation X must jointly file a copy of their previously filed Form

8875 marked “Automatic Taxable REIT Subsidiary” at the top and attach a statement including the name and EIN of Corporation Y within 30 days of the end of the quarter of the REIT’s tax year in which Corporation Y became a taxable REIT subsidiary.

Signature

Form 8875 must be signed by persons authorized to sign the tax returns of the taxable REIT subsidiary and the electing REIT.

Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal Revenue laws of the United States. You are required to give us the information. We need it ensure that you are complying with these laws.

You are not required to provide the

information requested on a form that is subject to the Paperwork Reduction Act unless the form display a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax returns and return information are confidential, as required by section 6103.

The time needed to complete and file this form will vary depending on individual circumstances. The estimated average time is:

Recordkeeping	6 hr., 56 min.
Learning about the
law or the form	18 min.
Preparing, copying, and
sending the form to
the IRS	25 min.

If you have comments concerning the accuracy of these time estimates or suggestions for making this form simpler, we would be happy to hear from you. You can write to the Tax Forms Committee, Western Area Distribution Center, Rancho Cordova, CA

95743-0001. Do not send the form to this address. Instead, see Where To File above.