26 U.S.C. § 859 — Adoption of annual accounting period

submitted 50 years ago by Pub. L. 94-455 to r/title-26-INTERNAL-REVENUE-CODE · 143 words · no verdicts yet

in plain englishAI-generated · not legal advice

A real estate investment trust generally must use a calendar tax year. A qualifying inactive entity may change to a calendar year without the Secretary’s approval when making the specified election.

(a) General rule. For this subtitle: (1) a real estate investment trust may not change to an accounting period other than the calendar year; and (2) a corporation, trust, or association may not elect to be a real estate investment trust for a taxable year beginning after October 4, 1976, unless its accounting period is the calendar year. Paragraph (2) does not apply to an entity that was treated as a real estate investment trust for a taxable year beginning on or before October 4, 1976. (b) Change without approval. Despite section 442, an entity that has not engaged in an active trade or business may change its accounting period to a calendar year without the Secretary’s approval if the change is connected with an election under section 856(c).

the actual law source: uscode.house.gov ↗public domain

(a) General rule

For purposes of this subtitle—

(1)

a real estate investment trust shall not change to any accounting period other than the calendar year, and

(2)

a corporation, trust, or association may not elect to be a real estate investment trust for any taxable year beginning after October 4, 1976, unless its accounting period is the calendar year.

Paragraph (2) shall not apply to a corporation, trust, or association which was considered to be a real estate investment trust for any taxable year beginning on or before October 4, 1976.

(b) Change of accounting period without approval

Notwithstanding section 442, an entity which has not engaged in any active trade or business may change its accounting period to a calendar year without the approval of the Secretary if such change is in connection with an election under section 856(c).

Source credit: (Added Pub. L. 94–455, title XVI, § 1604(i)(1), Oct. 4, 1976, 90 Stat. 1752, § 860; renumbered § 859 and amended Pub. L. 95–600, title III, § 362(d)(6), title VII, § 701(t)(1), Nov. 6, 1978, 92 Stat. 2852, 2911; Pub. L. 99–514, title VI, § 661(c), Oct. 22, 1986, 100 Stat. 2300.)

history & why it existsrecord from the source credit

1976Enacted · Pub. L. 94-455 · 90 Stat. 1752
1978Amended · Pub. L. 95-600 · 92 Stat. 2852, 2911
1986Amended · Pub. L. 99-514 · 100 Stat. 2300

A history note hasn’t been published yet. The record shows enactment by Pub. L. 94-455 on 1976-10-04.

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