Form 1120-REIT US Income Tax Return for Real Estate Invesment Trusts.

Caution: DRAFT FORM
This is an advance proof copy of an IRS tax form.
It is subject to change and OMB approval before it
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I.R.S. SPECIFICATIONS

TO BE REMOVED BEFORE PRINTING

INSTRUCTIONS TO PRINTERS
FORM 1120-REIT, PAGE 1 of 4
MARGINS: TOP 13 mm (1⁄ 2 "), CENTER SIDES.
PRINTS: HEAD TO FOOT
PAPER: WHITE WRITING, SUB. 20.
INK: BLACK
1
FLAT SIZE: 216 mm (8 ⁄ 2 ") x 559 mm (22"), TOP FOLD TO: 216 mm (8 1⁄ 2 ") x 279 mm (11")
PERFORATE: HORIZONTALLY ON FOLD

©

Name
Please
Type
or
Print

B Check if a:
1 REIT with 100%
owned subsidiaries
(see instructions)
2 Personal holding co.
(attach Sch. PH)

OMB No. 1545-1004

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For calendar year 2008 or tax year beginning

A Year of REIT status election

Signature

Revised proofs
requested

U.S. Income Tax Return for
Real Estate Investment Trusts

1120-REIT

Department of the Treasury
Internal Revenue Service

Date

O.K. to print

DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form

Action

, 2008, ending

2008

, 20

See separate instructions.

C Employer identification number

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

D Date REIT established

City or town, state, and ZIP code

E Total assets (see instructions)

$

F

Check applicable box(es):

(1)

Final return (2)

G

Identify the type of REIT (see instructions):

(1)

Name change (3)

Address change (4)

Equity REIT

Mortgage REIT

(2)

H PBA code (see instructions)

Amended return

Part I—Real Estate Investment Trust Taxable Income (see instructions)
Income (EXCLUDING income required to be reported in Part II or Part IV)
1
2
3
4
5
6
7
8

Dividends
Interest
Gross rents from real property
Other gross rents
Capital gain net income (attach Schedule D (Form 1120))
Net gain or (loss) from Form 4797, Part II, line 17 (attach Form 4797)
Other income (see instructions—attach schedule)
Total income. Add lines 1 through 7

1
2
3
4
5
6
7
8

©

Deductions (EXCLUDING deductions directly connected with income required to be reported in Part II or Part IV)
9
10
11
12
13
14
15
16
17
18
19
20
21

Compensation of officers
Salaries and wages (less employment credits)
Repairs and maintenance
Bad debts
Rents
Taxes and licenses
Interest
Depreciation (attach Form 4562)
Advertising
Other deductions (see instructions—attach schedule)
©
Total deductions. Add lines 9 through 18
Taxable income before net operating loss deduction, total deduction for dividends paid, and
section 857(b)(2)(E) deduction. Subtract line 19 from line 8
21a
Less: a Net operating loss deduction (see instructions)
21b
b Total deduction for dividends paid (Schedule A, line 6)
c Section 857(b)(2)(E) deduction (Schedule J, lines 2c, 2e, and 2f) 21c

9
10
11
12
13
14
15
16
17
18
19
20

21d

Tax and Payments
Real estate investment trust taxable income. Subtract line 21d from line 20
Total tax (Schedule J, line 7)
24 Payments: a 2007 overpayment credited to 2008 24a
24b
b 2008 estimated tax payments
) d Bal © 24d
c Less 2008 refund applied for on Form 4466 24c (
24e
e Tax deposited with Form 7004
24f
f Credits: (1) Form 2439
(2) Form 4136
24g
g Refundable credits from Form 3800, line 19c, and Form 8827, line 8c
©
25 Estimated tax penalty (see instructions). Check if Form 2220 is attached
26 Tax due. If line 24h is smaller than the total of lines 23 and 25, enter amount owed
27 Overpayment. If line 24h is larger than the total of lines 23 and 25, enter amount overpaid
28 Enter amount of line 27 you want: Credited to 2009 estimated tax ©
Refunded

22
23

22
23

Sign
Here

©

24h
25
26
27
28

Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true,
correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

©

Paid
Preparer’s
Use Only

Signature of officer
Preparer’s
signature

©

Firm’s name (or
yours if self-employed),
address, and ZIP code

Date

©

May the IRS discuss this return
with the preparer shown below
(see instructions)?
Yes
No

Title
Date

©

For Privacy Act and Paperwork Reduction Act Notice, see separate instructions.

Preparer’s SSN or PTIN

Check if
self-employed
EIN
Phone no.
Cat. No. 64114F

(

)
Form

1120-REIT

(2008)

2
I.R.S. SPECIFICATIONS

TO BE REMOVED BEFORE PRINTING

INSTRUCTIONS TO PRINTERS
FORM 1120-REIT, PAGE 2 of 4
MARGINS: TOP 13 mm (1⁄ 2 "), CENTER SIDES. PRINTS: HEAD TO FOOT
PAPER: WHITE WRITING, SUB. 20. INK: BLACK
FLAT SIZE: 216 mm (8 1⁄ 2 ") x 559 mm (22"), TOP FOLD TO: 216 mm (8 1⁄ 2 ") x 279 mm (11")
PERFORATE: HORIZONTALLY ON FOLD

DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 1120-REIT (2008)

Page

2

Part II—Tax on Net Income From Foreclosure Property (Section 856(e)) (see instructions)
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2
3
4
5
6

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Net gain or (loss) from the sale or other disposition of foreclosure property described in section
1221(a)(1) (attach schedule)
Gross income from foreclosure property (see instructions—attach schedule)
Total income from foreclosure property. Add lines 1 and 2
Deductions directly connected with the production of income shown on line 3 (attach schedule)
Net income from foreclosure property. Subtract line 4 from line 3

1
2
3
4
5

Tax on net income from foreclosure property. Multiply line 5 by 35%. Enter here and on Schedule
J, line 2b

6

Part III—Tax for Failure To Meet Certain Source-of-Income Requirements (Section 857(b)(5))
(see instructions)
1a
Enter total income from Part I, line 8
1b
Enter total income from foreclosure property from Part II, line 3
Total. Add lines 1a and 1b
Enter income from hedging transactions referred to in section
2a
856(c)(5)(G)
2b
b Subtract line 2a from line 1c
c Multiply line 2b by 95%
3 Enter income on line 1c from sources referred to in section 856(c)(2)
4 Subtract line 3 from line 2c. (If zero or less, enter -0-.)
5 Multiply line 1c by 75%
6 Enter income on line 1c from sources referred to in section 856(c)(3)
7 Subtract line 6 from line 5. (If zero or less, enter -0-.)
8 Enter the greater of line 4 or line 7. (If line 8 is zero, do not complete the rest of Part III.)
9 Enter the amount from Part I, line 20
10 Enter the net capital gain from Schedule D (Form 1120), line 13
11 Subtract line 10 from line 9
12a
12a Enter total income from Part I, line 8
b Enter the net short-term capital gain from Schedule D (Form 1120),
12b
line 5. (If line 5 is a loss, enter -0-.)
1a
b
c
2a

13
14
15
16

c Add lines 12a and 12b
Enter capital gain net income from Part I, line 5
Subtract line 13 from line 12c
Divide line 11 by line 14. Carry the result to five decimal places
Section 857(b)(5) tax. Multiply line 8 by line 15. Enter here and on Schedule J, line 2c

1c

2c
3
4
5
6
7
8
9
10
11

12c
13
14
15
16

Part IV—Tax on Net Income From Prohibited Transactions (see instructions)
1
2
3

Gain from sale or other disposition of section 1221(a)(1) property (other than foreclosure
property)
Deductions directly connected with the production of income shown on line 1
Tax on net income from prohibited transactions. Subtract line 2 from line 1. Enter here and
on Schedule J, line 2d

Schedule A
1

2
3
4
5
6

1
2
3

Deduction for Dividends Paid (see instructions)

Dividends paid (other than dividends paid after the end of the tax year). Do not include dividends
considered paid in the preceding tax year under section 857(b)(9) or 858(a), or deficiency
dividends as defined in section 860
Dividends paid in the 12-month period following the close of the tax year under a section 858(a)
election to treat the dividends as paid during the tax year
Dividends declared in October, November, or December deemed paid on December 31 under
section 857(b)(9)
Consent dividends (attach Forms 972 and 973)
Total dividends paid. Add lines 1 through 4
Total deduction for dividends paid. If there is net income from foreclosure property on
Part II, line 5, see instructions for limitation on the deduction for dividends paid. Otherwise,
enter total dividends paid from line 5 here and on line 21b, page 1

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3
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5

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Form

1120-REIT

(2008)

2
I.R.S. SPECIFICATIONS

TO BE REMOVED BEFORE PRINTING

INSTRUCTIONS TO PRINTERS
FORM 1120-REIT, PAGE 3 of 4
MARGINS: TOP 13 mm (1⁄ 2"), CENTER SIDES. PRINTS: HEAD TO FOOT
PAPER: WHITE WRITING, SUB. 20. INK: BLACK
FLAT SIZE: 216 mm (8 1⁄ 2") x 559 mm (22"), TOP FOLD TO: 216 mm (8 1⁄ 2") x 279 mm (11")
PERFORATE: HORIZONTALLY ON FOLD

DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 1120-REIT (2008)

Schedule J
1
2a
b
c
d
e
f
g
h
3a
b
c
d
e
4
5
6
7

Page

3

At the end of the tax year, did the REIT own, directly
or indirectly, 50% or more of the voting stock of a
domestic corporation? (For rules of attribution, see
section 267(c).)
If “Yes,” attach a schedule showing:(a) name and
employer identification number (EIN), (b) percentage
owned, and (c) taxable income or (loss) before NOL
and special deductions of such corporation for the
tax year ending with or within your tax year.

Yes No

5

2h

3e
4
5
6
7

If “Yes,” attach a schedule showing name and
identifying number. (Do not include any information
already entered in 3 above.) Enter percentage
owned ©

Yes No

c The REIT may have to file Form 5472. Enter number
of Forms 5472 attached ©
6

Is the REIT a subsidiary in a parent-subsidiary
controlled group?
If “Yes,” enter the name and EIN of the parent
corporation ©

At the end of the tax year, did any individual,
partnership, corporation, estate, or trust own, directly
or indirectly, 50% or more of the REIT’s voting stock?
(For rules of attribution, see section 856(h).)

At any time during the tax year, did one foreign
person own, directly or indirectly, at least 25% of:

(a) the total voting power of all classes of stock of
the REIT entitled to vote, or (b) the total value of all
classes of stock of the REIT? If “Yes,” enter:
a Percentage owned ©
b Owner’s country ©

7
4

©

Other Information (see instructions)

1 Check method of accounting:
a
Cash
b
Accrual
c
Other (specify) ©
2

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Check if the REIT is a member of a controlled group (attach Schedule O (Form 1120))
Important: Members of a controlled group, see instructions.
2a
Tax on REIT taxable income
2b
Tax from Part II, line 6
2c
Tax from Part III, line 16
2d
Tax from Part IV, line 3
2e
Tax imposed under section 857(b)(7)(A) (see instructions)
2f
Tax imposed under sections
856(c)(7) and
856(g)(5)
2g
Alternative minimum tax (attach Form 4626)
Income tax. Add lines 2a through 2g
3a
Foreign tax credit (attach Form 1118)
3b
Credit from Form 8834
3c
General business credit (attach Form 3800)
3d
Other credits (attach schedule—see instructions)
Total credits. Add lines 3a through 3d
Subtract line 3e from line 2h
Personal holding company tax (attach Schedule PH (Form 1120))
Other taxes. Check if from:
Form 4255
Form 8611
Other (attach schedule)
Total tax. Add lines 4 through 6. Enter here and on line 23, page 1

Schedule K

3

Tax Computation (see instructions)

During this tax year, did the REIT pay dividends (other
than stock dividends and distributions in exchange
for stock) in excess of the REIT’s current and
accumulated earnings and profits? (See sections 301
and 316.)
If “Yes,” file Form 5452.
Check this box if the REIT issued publicly offered debt
©
instruments with original issue discount
If so, the REIT may have to file Form 8281.

8

Enter the amount of tax-exempt interest received or accrued
during the tax year © $

9

Enter the available NOL carryover from prior tax
years. (Do not reduce it by any deduction on
line 21a, page 1.) ©
$
Form

1120-REIT

(2008)

2
I.R.S. SPECIFICATIONS

TO BE REMOVED BEFORE PRINTING

INSTRUCTIONS TO PRINTERS
FORM 1120-REIT, PAGE 4 of 4
MARGINS: TOP 13 mm (1⁄ 2"), CENTER SIDES. PRINTS: HEAD TO FOOT
PAPER: WHITE WRITING, SUB. 20. INK: BLACK
FLAT SIZE: 216 mm (8 1⁄ 2") x 559 mm (22"), TOP FOLD TO: 216 mm (8 1⁄ 2") x 279 mm (11")
PERFORATE: HORIZONTALLY ON FOLD

DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 1120-REIT (2008)

Schedule L

Page

Balance Sheets per Books
Assets

1
2a
b
3
4
5
6
7
8
9a
b
10
11a
b
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26

Liabilities and Shareholders’ Equity
Accounts payable
Mortgages, notes, bonds payable in less than 1 year
Other current liabilities (attach schedule)
Loans from shareholders
Mortgages, notes, bonds payable in 1 year or more
Other liabilities (attach schedule)
Capital stock: a Preferred stock
b Common stock
Additional paid-in capital
Retained earnings—Appropriated (attach schedule)
Retained earnings—Unappropriated
Adjustments to shareholders’ equity
(see instructions—attach schedule)
Less cost of treasury stock
Total liabilities and shareholders’ equity

©
c Balance
3 Excess of capital losses over capital gains
4 Income subject to tax not recorded on
books this year (itemize):

5

Expenses recorded on books this year not
deducted on this return (itemize):
a Depreciation
$
b Section 4981 tax
$
c Travel and entertainment $
Add lines 1 through 5

Schedule M-2

(b)

(c)

(

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(

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(

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(

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(

)

(

)

(

)

(d)

(

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Reconciliation of Income (Loss) per Books With Income per Return (see instructions)

1 Net income (loss) per books
2a Federal income tax $
b Less: Section 856(c)(7) tax, 856(g)(5) tax,
857(b)(5) tax, section 857(b)(7) tax, and
)
built-in gains tax $ (

6

(a)

4

End of tax year

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Cash
Trade notes and accounts receivable
Less allowance for bad debts
U.S. government obligations
Tax-exempt securities (see page 13 of instructions)
Other current assets (attach schedule)
Loans to shareholders
Mortgage and real estate loans
Other investments (attach schedule)
Buildings and other depreciable assets
Less accumulated depreciation
Land (net of any amortization)
Intangible assets (amortizable only)
Less accumulated amortization
Other assets (attach schedule)
Total assets

Schedule M-1

Beginning of tax year

7 Income recorded on books this year
not included on this return (itemize):
Tax-exempt interest $
8 Deductions on this return not
charged against book income this
year (itemize):
$
a Depreciation
b Net operating loss deduction
(line 21a, page 1) $
c Deduction for dividends paid
(line 21b, page 1) $
9
10
11
12

Net income from foreclosure property
Net income from prohibited transactions
Add lines 7 through 10
REIT taxable income (line 22,
page 1)— line 6 less line 11

Analysis of Unappropriated Retained Earnings per Books (Schedule L, line 23)

1
2
3

Balance at beginning of year
Net income (loss) per books
Other increases (itemize):

4

Add lines 1, 2, and 3

5 Distributions: a Cash
b Stock
c Property
6 Other decreases (itemize):
7 Add lines 5 and 6
8 Balance at end of year (line 4 less line 7)
Form

1120-REIT

(2008)