
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: 26USC859]

 
                     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. 859. Adoption of annual accounting period


(a) General rule

    For purposes of this subtitle--
        (1) a real estate investment trust shall not change to any 
    accounting period other than the calendar year, and
        (2) a corporation, trust, or association may not elect to be a 
    real estate investment trust for any taxable year beginning after 
    October 4, 1976, unless its accounting period is the calendar year.

Paragraph (2) shall not apply to a corporation, trust, or association 
which was considered to be a real estate investment trust for any 
taxable year beginning on or before October 4, 1976.

(b) Change of accounting period without approval

    Notwithstanding section 442, an entity which has not engaged in any 
active trade or business may change its accounting period to a calendar 
year without the approval of the Secretary if such change is in 
connection with an election under section 856(c).

(Added Pub. L. 94-455, title XVI, Sec. 1604(i)(1), Oct. 4, 1976, 90 
Stat. 1752, Sec. 860; renumbered Sec. 859 and amended Pub. L. 95-600, 
title III, Sec. 362(d)(6), title VII, Sec. 701(t)(1), Nov. 6, 1978, 92 
Stat. 2852, 2911; Pub. L. 99-514, title VI, Sec. 661(c), Oct. 22, 1986, 
100 Stat. 2300.)


                            Prior Provisions

    A prior section 859, added Pub. L. 94-455, title XVI, 
Sec. 1601(a)(1), Oct. 4, 1976, 90 Stat. 1742; amended Pub. L. 95-600, 
title VII, Sec. 701(t)(4), Nov. 6, 1978, 92 Stat. 2912, related to a 
deduction for deficiency dividends, prior to repeal by Pub. L. 95-600, 
title III, Sec. 362(d)(6), Nov. 6, 1978, 92 Stat. 2852. See section 860 
of this title.


                               Amendments

    1986--Pub. L. 99-514 designated existing provisions as subsec. (a) 
and added subsec. (b).
    1978--Pub. L. 95-600, Sec. 701(t)(1), designated existing provisions 
as par. (1), substituted ``change to any accounting period'' for 
``change to or adopt any annual accounting period'', and added par. (2) 
and provision for nonapplicability of par. (2) to a real estate 
investment trust for any taxable year beginning on or before Oct. 4, 
1976.


                    Effective Date of 1986 Amendment

    Amendment by Pub. L. 99-514 applicable to taxable 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 1978 Amendment

    Repeal of prior section 859 of this title and redesignation of 
section 860 of this title as this section by section 362(d)(6) of Pub. 
L. 95-600 applicable with respect to determinations (as defined in 
section 860(e) of this title) after Nov. 6, 1978, see section 362(e) of 
Pub. L. 95-600, set out as an Effective Date note under section 860 of 
this title.
    Section 701(t)(5) of Pub. L. 95-600 provided that: ``The amendments 
made by this subsection [amending this section and sections 275, 856, 
6212, and 6501 of this title] shall take effect on October 4, 1976.''
