1120-REIT U.S. Income Tax Return for Real Estate Investment Trusts

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Form

1120-REIT

U.S. Income Tax Return for Real Estate Investment Trusts
For calendar year 2023 or tax year beginning

Department of the Treasury
Internal Revenue Service
A Year of REIT status election
B Check if a:
1 REIT with 100%
owned subsidiaries
(see instructions)
2 Personal holding co.
(attach Sch. PH)

, 2023, ending

OMB No. 1545-0123

2023

, 20

Go to www.irs.gov/Form1120REIT for instructions and the latest information.

Please
Type
or
Print

Name

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)

TREASURY/IRS
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DO NOT FILE
$

F

Check applicable box(es):

G

Identify the type of REIT (see instructions):

(1)

Final return (2)
(1)

Name change

(3)

Address change

Equity REIT

(2)

Mortgage REIT

(4)

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 statement) . . . . . .
Total income. Add lines 1 through 7 . . . . . . . . . . .

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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
22

23

Sign
Here

Compensation of officers (see instructions—attach Form 1125-E) . . . . . . . . . . .
Salaries and wages (less employment credits) . . . . . . . . . . . . . . . . . .
Repairs and maintenance . . . . . . . . . . . . . . . . . . . . . . . .
Bad debts
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Rents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Taxes and licenses . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . .
Depreciation (attach Form 4562) . . . . . . . . . . . . . . . . . . . . . .
Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Energy efficient commercial buildings deduction (attach Form 7205) . . . . . . . . . .
Other deductions (see instructions—attach statement) . . . . . . . . . . . . . . .
Total deductions. Add lines 9 through 19 . . . . . . . . . . . . . . . . . . .
Taxable income before net operating loss and other special deductions. Subtract line 20 from line 8
Less: a Net operating loss deduction (see instructions) . . . . . .
22a
b Total deduction for dividends paid (Schedule A, line 7) . . .
22b
c Section 857(b)(2)(E) deduction (Schedule J, lines 2c, 2e, 2f, and
2g) . . . . . . . . . . . . . . . . . . . .
22c
Real estate investment trust taxable income. Subtract line 22d from line 21 . . . . . . .

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17
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19
20
21

22d
23

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.

Signature of officer

Paid
Preparer
Use Only

Print/Type preparer’s name

Date
Preparer’s signature

May the IRS discuss this return
with the preparer shown below?
Yes
No
See instructions.

Title
Date

PTIN

Firm’s EIN

Firm’s name

Phone no.

Firm’s address

For Paperwork Reduction Act Notice, see separate instructions.

Check
if
self-employed

Cat. No. 64114F

Form 1120-REIT (2023)

Page 2

Form 1120-REIT (2023)

Tax and Payments
24
25a
b
c
e
f
g
h
i
26
27
28
29

24
Total tax (Schedule J, line 11) . . . . . . . . . . . . . . . . . . . . . . .
Preceding year’s overpayment credited to the current year . . . . .
25a
Current year’s estimated tax payments . . . . . . . . . . . .
25b
) 25d
Less current year’s refund applied for on Form 4466 . . . . . . . .
25c (
Tax deposited with Form 7004 . . . . . . . . . . . . . . .
25e
Credit for tax paid on undistributed capital gains (attach Form 2439) . .
25f
Credit for federal tax paid on fuels (attach Form 4136) . . . . . . .
25g
Elective payment election amount from Form 3800 . . . . . . . .
25h
Total payments and credits. Combine lines 25d through 25h . . . . . . . . . . . .
25i
Estimated tax penalty (see instructions). Check if Form 2220 is attached . . . . . . . .
26
Tax due. If line 25i is smaller than the total of lines 24 and 26, enter amount owed . . . . . .
27
Overpayment. If line 25i is larger than the total of lines 24 and 26, enter amount overpaid . . .
28
Enter amount of line 28 you want: Credited to 2024 estimated tax
Refunded 29

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Part II—Tax on Net Income From Foreclosure Property (Section 856(e)) (see instructions)
1

Net gain or (loss) from the sale or other disposition of foreclosure property described in section
1221(a)(1) (attach statement) . . . . . . . . . . . . . . . . . . . . . . .

2
3
4
5
6

Gross income from foreclosure property (see instructions—attach statement) . . . . . . .
Total income from foreclosure property. Add lines 1 and 2 . . . . . . . . . . . . . .
Deductions directly connected with the production of income shown on line 3 (attach statement) .
Net income from foreclosure property. Subtract line 4 from line 3 . . . . . . . . . . .
Tax on net income from foreclosure property. Multiply line 5 by 21% (0.21). Enter here and on
Schedule J, line 2b . . . . . . . . . . . . . . . . . . . . . . . . . . .

1
2
3
4
5
6

Part III—Tax for Failure To Meet Certain Source-of-Income Requirements (Section 857(b)(5)) (see instructions)
1a
b
c
2a
b
c
d
e
f
3
4
5a
b
c
d
e
f
6
7
8
9
10
11
12a
b
c
13
14
15
16

Enter total income from Part I, line 8 . . . . . . . . . . . . .
1a
Enter total income from foreclosure property from Part II, line 3 . . . .
1b
Total. Add lines 1a and 1b . . . . . . . . . . . . . . . . . . . . .
Enter income from hedging transactions referred to in section 856(c)(5)(G)
2a
Enter income from passive foreign exchange gain referred to in section
856(n)(3). See instructions . . . . . . . . . . . . . . . .
2b
Enter income from sources referred to in section 856(c)(5)(J)(i). See instructions
2c
Enter the net section 965(a) inclusion reported in Part I. See instructions .
2d
Subtract lines 2a, 2b, 2c, and 2d from line 1c . . . . . . . . . .
2e
Multiply line 2e by 95% (0.95) . . . . . . . . . . . . . . . . . . . .
Enter income on line 1c from sources referred to in section 856(c)(2) . . . . . . .
Subtract line 3 from line 2f. (If zero or less, enter -0-.) . . . . . . . . . . . .
Enter income from hedging transactions referred to in section 856(c)(5)(G)
5a
Enter income from real estate foreign exchange gain referred to in section
856(n)(2). See instructions . . . . . . . . . . . . . . . .
5b
Enter income from sources referred to in section 856(c)(5)(J)(i). See instructions 5c
5d
Enter the net section 965(a) inclusion reported in Part I. See instructions .
Subtract lines 5a, 5b, 5c, and 5d from line 1c . . . . . . . . . .
5e
Multiply line 5e by 75% (0.75) . . . . . . . . . . . . . . . . . . . .
Enter income on line 1c from sources referred to in section 856(c)(3) . . . . . . .
Subtract line 6 from line 5f. (If zero or less, enter -0-.) . . . . . . . . . . . .
Enter the greater of line 4 or line 7. (If line 8 is zero, do not complete the rest of Part III.)
Enter the amount from Part I, line 21 . . . . . . . . . . . . . . . . . .
Enter the net capital gain from Schedule D (Form 1120), line 17 . . . . . . . . .
Subtract line 10 from line 9 . . . . . . . . . . . . . . . . . . . . .
Enter total income from Part I, line 8 . . . . . . . . . . . . .
12a
Enter the net short-term capital gain from Schedule D (Form 1120), line 7.
(If line 7 is a loss, enter -0-.) . . . . . . . . . . . . . . . .
12b
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 .

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1c

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2f
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4

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5f
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7
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11

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12c
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14
15
16

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Form 1120-REIT (2023)

Page 3

Form 1120-REIT (2023)

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
7

2a
b
c
d
e
f
g
h
3a
b
c
d
e
4
5
6
7
8
9
10
11

3

Deduction for Dividends Paid (see instructions)

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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) . . . . . . . . . . . . . . . . .
Deficiency dividends (section 860) (attach Form 976) . . . . . . . . . . . . . . .
Total dividends paid. Add lines 1 through 5 . . . . . . . . . . . . . . . . . . .
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 the total
dividends paid from line 6 here and on line 22b of page 1 . . . . . . . . . . . . . .

Schedule J
1

1
2

1
2
3
4
5
6

7

Tax Computation (see instructions)

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
. . . . . . . . . . . . . . .
Tax from Part II, line 6 . . . . . . . . . . . . . . . . . .
2b
Tax from Part III, line 16 . . . . . . . . . . . . . . . . .
2c
Tax from Part IV, line 3 . . . . . . . . . . . . . . . . .
2d
Tax imposed under section 857(b)(7)(A) (see instructions) . . . . . .
2e
Tax imposed under section 856(c)(7) . . . . . . . . . . . . .
2f
Tax imposed under section 856(g)(5) . . . . . . . . . . . . .
2g
Income tax. Add lines 2a through 2g . . . . . . . . . . . . . . . . .
Foreign tax credit (attach Form 1118)
. . . . . . . . . . . .
3a
Credit from Form 8834 (see instructions) . . . . . . . . . . .
3b
General business credit (attach Form 3800)
. . . . . . . . . .
3c
Other credits (attach statement—see instructions) . . . . . . . .
3d
Total credits. Add lines 3a through 3d . . . . . . . . . . . . . . . .
Subtract line 3e from line 2h
. . . . . . . . . . . . . . . . . . .
Personal holding company tax (attach Schedule PH (Form 1120)) . . . . . . .
Interest on deferred tax liability for installment obligations under section 453A(c) . .
Interest on deferred tax liability for installment obligations under section 453(l)(3) . .
Recapture of investment credit (attach Form 4255) . . . . . . . . . . . .
Recapture of low-income housing credit (attach Form 8611) . . . . . . . . .
Other taxes (see instructions—attach statement) . . . . . . . . . . . . .
Total tax. Add lines 4 through 10. Enter here and on line 24, page 2 . . . . . .

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2h

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3e
4
5
6
7
8
9
10
11

Form 1120-REIT (2023)

Page 4

Form 1120-REIT (2023)

Schedule K
1
a
b
c
2

Other Information (see instructions)

Check method of accounting:
Cash
Accrual
Other (specify):
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 statement 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

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3

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

4

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

5

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? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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If “Yes,” enter:
a Percentage owned:
b Owner’s country:
c The REIT may have to file Form 5472. Enter number of Forms 5472 attached . . . . .
6
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.
Enter the amount of tax-exempt interest received or accrued during the tax year . . .
$
Enter the available NOL carryover from prior tax years. (Do not reduce it by any deduction
on line 22a, page 1.) . . . . . . . . . . . . . . . . . . . . . . .
$
Did the REIT have an election under section 163(j) for any real property trade or business or any farming business
in effect during the tax year? See instructions . . . . . . . . . . . . . . . . . . . . . . .

7
8
9
10
11

Does the REIT satisfy one or more of the following? See instructions . . . . . . . . . . . . . . .
a The REIT owns a pass-through entity with current or prior-year carryover excess business interest expense.
b The REIT’s aggregate average annual gross receipts (determined under section 448(c)) for the 3 tax years
preceding the current tax year are more than $29 million and the REIT has business interest expense.
c

12

The REIT is a tax shelter and the REIT has business interest expense.
If “Yes” to any of the above, complete and attach Form 8990.
Is the REIT attaching Form 8996 to certify as a qualified opportunity fund?
If “Yes,” enter amount from Form 8996, line 15 . . . . . . . . .

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Form 1120-REIT (2023)

Page 5

Form 1120-REIT (2023)

Schedule L Balance Sheets per Books
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

Assets
Cash . . . . . . . . . . . . .
Trade notes and accounts receivable . . .
(
Less allowance for bad debts . . . . .
U.S. Government obligations . . . . .
Tax-exempt securities (see instructions) . .
Other current assets (attach statement) . .
Loans to shareholders
. . . . . . .
Mortgage and real estate loans
. . . .
Other investments (attach statement) . . .
Buildings and other depreciable assets . .
(
Less accumulated depreciation . . . .
Land (net of any amortization) . . . . .
Intangible assets (amortizable only) . . .
(
Less accumulated amortization
. . . .
Other assets (attach statement) . . . .
Total assets . . . . . . . . . . .
Liabilities and Shareholders’ Equity
Accounts payable . . . . . . . . .
Mortgages, notes, bonds payable in less than 1 year
Other current liabilities (attach statement) .
Loans from shareholders . . . . . . .
Mortgages, notes, bonds payable in 1 year or more
Other liabilities (attach statement) . . . .
Capital stock:
a Preferred stock . . .
b Common stock . . .
Additional paid-in capital . . . . . . .
Retained earnings—Appropriated (attach statement)
Retained earnings—Unappropriated . . .
Adjustments
to
shareholders’
equity
(see instructions—attach statement) . . .

Beginning of tax year
(a)

End of tax year
(b)

)

(c)

(

(d)

)

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)

(

)

)

(

)

(
)
(
Less cost of treasury stock . . . . . .
Total liabilities and shareholders’ equity . .
Schedule M-1 Reconciliation of Income (Loss) per Books With Income per Return (see instructions)
7
Income recorded on books this year
1
Net income (loss) per books . . . .
not included on this return (itemize):
2a Federal income tax
$
b Less: Section 856(c)(7) tax, 856(g)(5) tax,
Tax-exempt interest $
857(b)(5) tax, section 857(b)(7) tax, and
8
Deductions on this return not
built-in gains tax . $ (
charged against book income this
)
year (itemize):
c Balance . . . . . . . . . .
3
Excess of capital losses over capital gains
a Depreciation .
$
4
Income subject to tax not recorded on
b Net operating loss deduction (Part I,
books this year (itemize):
line 22a) . . . . $
5
Expenses recorded on books this year
c Deduction for dividends paid (Part I,
not deducted on this return (itemize):
line 22b) . . . . $
a Depreciation . . . $
9
Net income from foreclosure property
b Section 4981 tax . $
10
Net income from prohibited transactions
c Travel and entertainment $
11
Add lines 7 through 10 . . . .
12
REIT taxable income (Part I, line 23)
—line 6 less line 11 . . . . .
6
Add lines 1 through 5 . . . . . .
Schedule M-2 Analysis of Unappropriated Retained Earnings per Books (Schedule L, line 23)
5
Distributions: a Cash . . . .
1
Balance at beginning of year . . .
b Stock
. . .
2
Net income (loss) per books . . . .
c Property . . .
3
Other increases (itemize):
6
Other decreases (itemize):
7
Add lines 5 and 6 . . . . . .
4
Add lines 1, 2, and 3 . . . . . .
8
Balance at end of year (line 4 less line 7)

)

Form 1120-REIT (2023)