§859 — Adoption of annual accounting period

2 cases·2 cited

(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).

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