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Taxable REIT Subsidiary Election
Form 8875 OMB No. 1545-0123
(Rev. September 2014) (Under section 856(I)(1) of the Internal Revenue Code)
Department of the Treasury
Internal Revenue Service ▶ Information about Form 8875 and its instructions is at www.irs.gov/form8875.
Part I Taxable REIT Subsidiary Making the Election
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

Part II Electing REIT That Owns Stock in the Taxable REIT Subsidiary
5 Name of electing REIT 6 Employer identification number (EIN)

Number, street, and room or suite no. (If a P.O. box, see instructions.) 7 Date incorporated or organized

City or town, state, and ZIP code 8 State of incorporation or organization

9 Name of officer of electing REIT or legal representative whom the IRS may contact for more information 10 Telephone number of officer or legal representative

Part III Information on the Election

11 Date election is to take effect (month, day, year) (see instructions) ▶

12 Did the subsidiary previously file a federal income tax return? If “Yes,” complete lines 13a and 13b . . . . . . . . . . . ▶ Yes No
13b Check type of return filed:
13a Tax year ending date of last return (month, day, year) . . . ▶ Form 1120 Other ▶

14 Was the subsidiary’s last return filed as part of a consolidated return (for which the subsidiary was not the common parent)? If “Yes,” complete
lines 15a and 15b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ▶ Yes No
15a Name of subsidiary’s common parent 15b EIN of subsidiary’s common parent

16 Does this taxable REIT subsidiary own 35% of the total voting power or value of securities of another lower tier corporation (other than a
REIT)? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ▶ Yes No
If “Yes,” see instructions for required attachment.

Under penalties of perjury, I declare that I have examined this election, including accompanying schedules and statements, and to the best of my knowledge and belief, it is
true, correct, and complete.
Signature of officer
of taxable REIT subsidiary ▶
(Title) (Date signed)
Signature of officer
of electing REIT . . . ▶
(Title) (Date signed)

General Instructions A corporation is ineligible to be treated 1. The rights are provided to an
as a taxable REIT subsidiary if it directly eligible independent contractor (as
Section references are to the Internal or indirectly: defined in section 856(d)(9)) to operate or
Revenue Code unless otherwise noted. • Operates or manages a lodging facility manage a lodging facility or a health care
Purpose of Form or a health care facility, or facility,
A corporation (other than a REIT or an • Provides to any other person (under a 2. The rights are held by the
ineligible corporation) and a REIT use franchise, license, or otherwise) rights to corporation as a franchisee, licensee, or
Form 8875 to jointly elect to have the any brand name under which any in a similar capacity, and
corporation treated as a taxable REIT lodging facility or health care facility is 3. The lodging facility or health care
subsidiary (TRS) under section 856(l). operated. facility is either owned by the
The corporation and the REIT can Exception. A corporation is eligible to corporation or leased by the electing
make this election if the REIT directly or be treated as a taxable REIT subsidiary REIT to the corporation.
indirectly owns stock in the corporation. if:
The election does not require IRS
consent.
For Paperwork Reduction Act Notice, see page 2. Cat. No. 31145M Form 8875 (Rev. 9-2014)

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Form 8875 (Rev. 9-2014) Page 2
When To Make the Election If the TRS has not received its EIN by the outstanding voting securities of
the time the return is due, enter “Applied Corporation Y. On March 15, 2014,
The corporation and the REIT can make for” in the space for the EIN. For more Corporation X acquired an additional
this election at any time during the tax details, see Pub. 583. 10% of the outstanding voting securities
year. However, the effective date of the of Corporation Y. Under section 856(l)(2),
election depends upon when Form 8875 If the securities of a corporation are
is filed. See the instructions for line 11. owned directly or indirectly by more than Corporation Y will be treated as a TRS of
one electing REIT, each electing REIT the REIT effective March 15, 2014. The
Where To File seeking to treat the corporation as a REIT and Corporation X must jointly file a
File Form 8875 with the: taxable REIT subsidiary must file a copy of their previously filed Form 8875
separate Form 8875. marked “Automatic Taxable REIT
Department of the Treasury Subsidiary” at the top and attach a
Internal Revenue Service Line 11 statement including the name and EIN of
Ogden, UT 84201 The effective date of the TRS election Corporation Y within 30 days of the end
Do not attach it to the corporation’s or entered on line 11 cannot be more than: of the quarter of the REIT’s tax year in
which Corporation Y became a TRS.
REIT’s tax returns. 1. Two months and 15 days prior to
Revocation of Election the date of filing the election or Signature
Once the TRS election is made, it is 2. Twelve months after the date of Form 8875 must be signed by persons
irrevocable unless both the corporation filing the election. authorized to sign the tax returns of the
and the REIT consent to the revocation. If the election specifies a date earlier TRS and the electing REIT.
Notify the IRS of the revocation by jointly than the date in 1above, it will be
filing a new Form 8875, and writing the treated as being effective 2 months and Paperwork Reduction Act Notice. We
word “REVOCATION” across the top of 15 days prior to the date of filing the ask for the information on this form to
the form. Complete Parts I and II and election. If the election specifies a date carry out the Internal Revenue laws of
provide both signatures. This revocation later than the date in 2above, it will be the United States. You are required to
does not require IRS consent. The treated as being effective 12 months give us the information. We need it to
revocation is effective on the date the after the date of filing the election. ensure that you are complying with these
new Form 8875 is filed. If no date is specified, the election is laws.
If the employer identification number effective on the date Form 8875 is filed. You are not required to provide the
(EIN) of the TRS changes as a result of a information requested on a form that is
change in status (for example, a merger), Line 16 subject to the Paperwork Reduction Act
the election is automatically terminated. A TRS that directly or indirectly owns unless the form displays a valid OMB
A new election must be made using the 35% of the total voting power or value of control number. Books or records
new EIN. the outstanding securities of a relating to a form or its instructions must
corporation (other than a REIT) must be retained as long as their contents
Specific Instructions attach a statement to Form 8875 with may become material in the
the name and EIN of that corporation. administration of any Internal Revenue
Address Under section 856(l), this corporation law. Generally, tax returns and return
Include the suite, room, or other unit also will be treated as a TRS of the REIT information are confidential, as required
number after the street address. If the named in Part II. by section 6103.
Post Office does not deliver to the street If at the time that an election is filed on The time needed to complete and file
address and the corporation has a P.O. Form 8875, the TRS named in Part I this form will vary depending on
box, show the box number instead of the directly or indirectly owns less than 35% individual circumstances. The estimated
street address. of the total voting power or value of the average time is:
If the electing REIT has the same outstanding securities of another Recordkeeping . . . . 6 hr., 56 min.
address as the TRS, enter “Same as corporation and subsequently acquires
corporation” in Part II. securities in that corporation that will Learning about the
result in an ownership interest of 35% or law or the form . . . . . . 18 min.
If either the TRS or the electing REIT more, the TRS and REIT that filed Form Preparing, copying, and
changes its mailing address or 8875 must file a copy of Form 8875 sending the form to
responsible party after the election is marked “Automatic Taxable REIT the IRS . . . . . . . . 25 min.
filed, it should notify the IRS by filing Subsidiary” at the top of the form and If you have comments concerning the
Form 8822-B, Change of Address or attach a statement including the name accuracy of these time estimates or
Responsible Party—Business. and EIN of the new lower tier TRS. The suggestions for making this form
Employer Identification new Form 8875 must be filed in the simpler, we would be happy to hear from
same manner as the original Form 8875 you. You can write to the Internal
Number (EIN) within 30 days of the end of the quarter Revenue Service, Tax Forms and
Enter the TRS’s EIN. If the TRS does not of the REIT’s tax year in which the lower Publications Division, 1111 Constitution
have an EIN, it must apply for one. An tier corporation became a TRS. Ave., NW, IR-6526, Washington, DC
EIN can be applied for: If the 35% interest is not the result of 20224.
• Online—Click on the Employer ID an acquisition, no filing is necessary. Do not send the form to this address.
Numbers link at www.irs.gov/businesses. Example. REIT and Corporation X Instead, see Where To File above.
The EIN is issued immediately once the jointly filed Form 8875 on January 15,
application information is validated. 2014, with an effective date of January
• By mailing or faxing Form SS-4, 1, 2014. On the date that Form 8875
Application for Employer Identification was filed, Corporation X owned 30% of
Number.

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