What is Form 8875?
Form 8875, the Taxable REIT Subsidiary Election, is crucial for corporations and Real Estate Investment Trusts (REITs) looking to make a joint election. By filing this form, a corporation can gain the status of a Taxable REIT Subsidiary (TRS), unlocking potential tax benefits and operational flexibility. Completing Form 8875 is essential for compliance with IRS regulations, allowing these entities to access specific tax advantages associated with TRS status, thereby avoiding penalties or audits.
What is Form 8875 used for?
Form 8875 is important for real estate investment trusts (REITs). Here’s what it’s used for:
- Electing a corporation to be a taxable REIT subsidiary (TRS).
- Allowing a REIT to own stock in the TRS and manage activities without losing tax benefits.
- Enabling the TRS to offer non-customary services to tenants without impacting the REIT's tax status.
- Facilitating TRS formation to manage assets like hotels, which do not meet REIT income requirements.
How to fill out Form 8875?
- 1
Gather information about the REIT and subsidiary: names, EINs, addresses, and prior tax return details.
- 2
Fill out each section of the form accurately, following the structured format.
- 3
Ensure all required fields are completed, including organizational structure and financial metrics.
- 4
Attach necessary statements and financial documents such as audited financial statements and records of shareholder distributions.
- 5
Download the completed form to keep it for your records.
Who is required to fill out Form 8875?
Form 8875 must be completed by corporations and Real Estate Investment Trusts (REITs) electing to treat a corporation as a taxable REIT subsidiary under IRS regulations. This includes all necessary details about the entities involved.
REITs and their taxable REIT subsidiaries are required to file Form 8875 to notify the IRS of their election, ensuring compliance and potentially gaining tax advantages.
When is Form 8875 not required?
Form 8875 is not required for entities that don't qualify as a Taxable REIT Subsidiary under Internal Revenue Code Section 856. Specifically, corporations managing lodging or healthcare facilities directly or indirectly do not need this form, unless they meet certain exceptions regarding independent contractors or franchise agreements.
When is Form 8875 due?
The deadline for Form 8875 is when it is filed. The effective date of the election can be no more than two months and 15 days before the filing date or up to 12 months after. If you don't specify a date, the election takes effect on the date you file Form 8875.
How to get a blank Form 8875?
To get a blank Form 8875, simply visit our website. The form is issued by the Department of the Treasury, Internal Revenue Service (IRS), and we have a blank version ready for you in our editor. Remember, our platform aids in filling and downloading forms but does not support filing.
How to sign Form 8875?
To sign Form 8875, you must provide a handwritten signature, as electronic signatures are not accepted for this specific form. After filling out the necessary fields using PDF Guru, simply print the form and add your signature. Remember to check for any updates regarding this form, as requirements may change. Once completed, download your signed form for your records and handle any submission processes outside of PDF Guru.
Where to file Form 8875?
To submit Form 8875, mail it to the address provided on the IRS website. Ensure you check the correct mailing location based on your situation.
Make sure all sections are filled out accurately. This helps avoid delays in processing your election for a taxable REIT subsidiary.
