
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC858]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                        Subtitle A--Income Taxes
 
                  CHAPTER 1--NORMAL TAXES AND SURTAXES
 
Subchapter M--Regulated Investment Companies and Real Estate Investment 
                                 Trusts
 
                 PART II--REAL ESTATE INVESTMENT TRUSTS
 
Sec. 858. Dividends paid by real estate investment trust after 
        close of taxable year
        

(a) General rule

    For purposes of this part, if a real estate investment trust--
        (1) declares a dividend before the time prescribed by law for 
    the filing of its return for a taxable year (including the period of 
    any extension of time granted for filing such return), and
        (2) distributes the amount of such dividend to shareholders or 
    holders of beneficial interests in the 12-month period following the 
    close of such taxable year and not later than the date of the first 
    regular dividend payment made after such declaration,

the amount so declared and distributed shall, to the extent the trust 
elects in such return (and specifies in dollar amounts) in accordance 
with regulations prescribed by the Secretary, be considered as having 
been paid only during such taxable year, except as provided in 
subsections (b) and (c).

(b) Receipt by shareholder

    Except as provided in section 857(b)(8), amounts to which subsection 
(a) applies shall be treated as received by the shareholder or holder of 
a beneficial interest in the taxable year in which the distribution is 
made.

(c) Notice to shareholders

    In the case of amounts to which subsection (a) applies, any notice 
to shareholders or holders of beneficial interests required under this 
part with respect to such amounts shall be made not later than 30 days 
after the close of the taxable year in which the distribution is made 
(or mailed to its shareholders or holders of beneficial interests with 
its annual report for the taxable year).

(Added Pub. L. 86-779, Sec. 10(a), Sept. 14, 1960, 74 Stat. 1008; 
amended Pub. L. 94-455, title XVI, Secs. 1604(h), title XIX, 
Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1752, 1834; Pub. L. 99-514, 
title VI, Secs. 665(b)(2), 668(b)(1)(B), Oct. 22, 1986, 100 Stat. 2304, 
2307; Pub. L. 100-647, title I, Sec. 1018(u)(27), Nov. 10, 1988, 102 
Stat. 3591.)


                               Amendments

    1988--Subsec. (b). Pub. L. 100-647, Sec. 1018(u)(27), made technical 
correction to directory language of Pub. L. 99-514, see 1986 Amendment 
note below.
    1986--Subsec. (b). Pub. L. 99-514, Sec. 668(b)(1)(B), as amended by 
Pub. L. 100-647, Sec. 1018(u)(27), substituted ``Except as provided in 
section 857(b)(8), amounts'' for ``Amounts''.
    Subsec. (c). Pub. L. 99-514, Sec. 665(b)(2), inserted ``(or mailed 
to its shareholders or holders of beneficial interests with its annual 
report for the taxable year)''.
    1976--Subsec. (a). Pub. L. 94-455, Secs. 1604(h), 1906(b)(13)(A), 
inserted ``(and specifies in dollar amounts)'' after ``to the extent the 
trust elects in such return'' and substituted ``paid only during such 
taxable year'' for ``paid during such taxable year'', and struck out 
``or his delegate'' after ``Secretary''.


                    Effective Date of 1988 Amendment

    Amendment by Pub. L. 100-647 effective, except as otherwise 
provided, as if included in the provision of the Tax Reform Act of 1986, 
Pub. L. 99-514, to which such amendment relates, see section 1019(a) of 
Pub. L. 100-647, set out as a note under section 1 of this title.


                    Effective Date of 1986 Amendment

    Amendment by section 665(b)(2) of Pub. L. 99-514 applicable to 
taxable years beginning after Dec. 31, 1986, and by section 668(b)(1)(B) 
of Pub. L. 99-514 applicable to calendar years beginning after Dec. 31, 
1986, see section 669 of Pub. L. 99-514, set out as a note under section 
856 of this title.


                    Effective Date of 1976 Amendment

    For effective date of amendment by section 1604(h) of Pub. L. 94-
455, see section 1608(d) of Pub. L. 94-455, set out as a note under 
section 856 of this title.


                             Effective Date

    Section applicable with respect to taxable years of real estate 
investment trusts beginning after Dec. 31, 1960, see section 10(k) of 
Pub. L. 86-779, set out as a note under section 856 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 857, 860, 4981 of this 
title.
