§858 — Dividends paid by real estate investment trust after close of taxable year
6 cases·1 followed·5 cited—17% support
Statute Text — 26 U.S.C. §858
For purposes of this part, if a real estate investment trust—
declares a dividend before the time prescribed by law for the filing of its return for a taxable year (including the period of any extension of time granted for filing such return), and
distributes the amount of such dividend to shareholders or holders of beneficial interests in the 12-month period following the close of such taxable year and not later than the date of the first regular dividend payment made after such declaration,
the amount so declared and distributed shall, to the extent the trust elects in such return (and specifies in dollar amounts) in accordance with regulations prescribed by the Secretary, be considered as having been paid only during such taxable year, except as provided in subsections (b) and (c).
Except as provided in section 857(b)(9), amounts to which subsection (a) applies shall be treated as received by the shareholder or holder of a beneficial interest in the taxable year in which the distribution is made.
In the case of amounts to which subsection (a) applies, any notice to shareholders or holders of beneficial interests required under this part with respect to such amounts shall be made not later than 30 days after the close of the taxable year in which the distribution is made (or mailed to its shareholders or holders of beneficial interests with its annual report for the taxable year).
Treasury Regulations
- Treas. Reg. §Treas. Reg. §1.858-1 Dividends paid by a real estate investment trust after close of taxable year
- Treas. Reg. §Treas. Reg. §1.858-1(a) General rule.
- Treas. Reg. §Treas. Reg. §1.858-1(b) Election—(1) Method of making election.
- Treas. Reg. §Treas. Reg. §1.858-1(c) Receipt by shareholders.
- Treas. Reg. §Treas. Reg. §1.858-1(d) Illustrations.
- Treas. Reg. §Treas. Reg. §1.858-1(e) Notice to shareholders.
6 Citing Cases
I.R.C., in respect of the portion of S’s compensation that the Court recharacterized as a disguised dividend. After the submission of the computations and related objections, Congress passed the Pension Protection Act of 2006 (PPA), Pub. L. 109-280, sec. 858, 120 Stat. 1020, which amended sec. 6214(b), I.R.C., to provide that the Tax Court may apply the doctrine of equitable recoupment, effective for any action or proceeding in the Court with respect to which a decision has not become final as o