Taxation of Real Estate Investment Trusts: Retroactive QEF election made by REIT - IRS Private Letter Ruling 201029016

Taxation of Real Estate Investment Trusts: Retroactive QEF election made by REIT - IRS Private Letter Ruling 201029016: "This is in response to your letter received by our office on November 9, 2009, requesting the consent of the Commissioner of the Internal Revenue Service to make a retroactive qualified electing fund ('QEF') election under section 1295(b) of the Internal Revenue Code ('Code') and Treas. Reg. �1.1295-3(f) with respect to your investment in FC.

The rulings contained in this letter are based upon information and representations submitted by the taxpayer and accompanied by a penalty of perjury statement executed by an appropriate party. While this office has not verified any of the material submitted in support of the request for rulings, it is subject to verification on examination.

FACTS
Taxpayer is a State X corporation. Taxpayer and Company A, a Real Estate Investment Trust (Taxpayer’s indirect shareholder), both made an election to treat Taxpayer as a taxable REIT subsidiary effective Date 1. Company B (Taxpayer’s majority direct shareholder) is an operating partnership owned primarily by Company A. Taxpayer is a calendar year taxpayer and uses the accrual method of accounting."