Form 8875, Taxable REIT Subsidiary Election
Form 8875 is the joint election a corporation and a REIT file to treat the corporation as a taxable REIT subsidiary. Fill in the official IRS PDF below and download it.
This is the genuine IRS PDF, unmodified. Source: IRS official page.
What is 8875?
Form 8875, Taxable REIT Subsidiary Election, is filed jointly by a corporation and a real estate investment trust to elect taxable REIT subsidiary (TRS) status for the corporation under section 856(l). A TRS is a fully taxable corporation in which the REIT owns stock, and TRS status lets it earn income from activities the REIT could not conduct directly, such as certain services for tenants, without disqualifying the REIT.
Because the election is joint, both entities must sign, and the corporation cannot itself be a REIT or another ineligible corporation. The election stays in effect until it is revoked or the requirements stop being met, and REITs remain subject to limits on how much of their assets can consist of TRS securities.
Who files 8875?
- A REIT and a corporation it invests in that together want TRS treatment for the corporation
- REITs setting up a subsidiary to provide noncustomary services to tenants
- REITs whose subsidiary will hold operations that would otherwise produce bad REIT income
- Corporations joining a REIT structure that need their status settled from a chosen effective date
How to fill out 8875
- Enter the electing corporation’s name, EIN, and address in the section for the subsidiary.
- Enter the REIT’s name, EIN, and address in the section for the electing REIT.
- Enter the date you want the TRS election to take effect, watching the timing limits in the instructions.
- Have authorized officers of both the corporation and the REIT sign and date the form.
- Download the finished PDF and file it with the IRS service center listed in the instructions. It is filed on its own, not with a return.
Quick fill 8875 on this page
Prefer to see the form itself while you type? Open 8875 in the editor to fill it on the actual pages, add a signature, and download.
Frequently asked questions
When can the TRS election take effect?
The effective date generally cannot be more than 2 months and 15 days before the filing date or more than 12 months after it. Check the current instructions for the exact timing rules before choosing a date.
Does a TRS file its own tax return?
Yes. A taxable REIT subsidiary is a regular C corporation for tax purposes and files its own Form 1120, paying corporate tax on its income. The election affects the REIT qualification rules, not the subsidiary’s own filing duty.
How does the election end?
The REIT and the corporation can revoke it jointly, and it also ends if the requirements stop being met, for example if the REIT no longer qualifies as a REIT. The instructions explain the revocation procedure.