Form 8875

(Rev. September 2014)

Department of the Treasury 

Internal Revenue Service 

Taxable REIT Subsidiary Election 

(Under section 856(I)(1) of the Internal Revenue Code)

▶ Information about Form 8875 and its instructions is at www.irs.gov/form8875. 

OMB No. 1545-0123

Part I Taxable REIT Subsidiary Making the Election

1 Name of taxable REIT subsidiary

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

City or town, state, and ZIP code

2 Employer identification number (EIN)

3 Date incorporated or organized

4 State or country of incorporation or organization

Part II Electing REIT That Owns Stock in the Taxable REIT Subsidiary

5 Name of electing REIT

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

City or town, state, and ZIP code

6 Employer identification number (EIN)

7 Date incorporated or organized

8 State of incorporation or organization

9 Name of officer of electing REIT or legal representative whom the IRS may contact for more information 10 Telephone number of officer or legal representative

Part III Information on the Election

11 Date election is to take effect (month, day, year) (see instructions) ▶

12 Did the subsidiary previously file a federal income tax return? If “Yes,” complete lines 13a and 13b . . . . . . . . . . . ▶ Yes No

13a Tax year ending date of last return (month, day, year) . . . ▶

13b Check type of return filed:

Form 1120 Other ▶

14 Was the subsidiary’s last return filed as part of a consolidated return (for which the subsidiary was not the common parent)? If “Yes,” complete 

lines 15a and 15b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ▶ Yes No

15a Name of subsidiary’s common parent 15b EIN of subsidiary’s common parent

16 Does this taxable REIT subsidiary own 35% of the total voting power or value of securities of another lower tier corporation (other than a 

REIT)? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ▶ Yes No

If “Yes,” see instructions for required attachment.

Under penalties of perjury, I declare that I have examined this election, including accompanying schedules and statements, and to the best of my knowledge and belief, it is 

true, correct, and complete.

Signature of officer 

of taxable REIT subsidiary ▶

(Title) (Date signed)

Signature of officer 

of electing REIT . . . ▶

(Title) (Date signed)

General Instructions

Section references are to the Internal 

Revenue Code unless otherwise noted.

Purpose of Form

A corporation (other than a REIT or an 

ineligible corporation) and a REIT use 

Form 8875 to jointly elect to have the 

corporation treated as a taxable REIT 

subsidiary (TRS) under section 856(l).

The corporation and the REIT can 

make this election if the REIT directly or 

indirectly owns stock in the corporation. 

The election does not require IRS 

consent.

A corporation is ineligible to be treated 

as a taxable REIT subsidiary if it directly 

or indirectly:

• Operates or manages a lodging facility 

or a health care facility, or

• Provides to any other person (under a 

franchise, license, or otherwise) rights to 

any brand name under which any 

lodging facility or health care facility is 

operated.

Exception. A corporation is eligible to

be treated as a taxable REIT subsidiary 

if:

1. The rights are provided to an

eligible independent contractor (as

defined in section 856(d)(9)) to operate or 

manage a lodging facility or a health care 

facility,

2. The rights are held by the

corporation as a franchisee, licensee, or

in a similar capacity, and

3. The lodging facility or health care

facility is either owned by the

corporation or leased by the electing

REIT to the corporation.

For Paperwork Reduction Act Notice, see page 2. Cat. No. 31145M Form 8875 (Rev. 9-2014) 
Form 8875 (Rev. 9-2014) Page 2 

When To Make the Election

The corporation and the REIT can make 

this election at any time during the tax 

year. However, the effective date of the 

election depends upon when Form 8875 

is filed. See the instructions for line 11.

Where To File

File Form 8875 with the: 

Department of the Treasury 

Internal Revenue Service 

Ogden, UT 84201 

Do not attach it to the corporation’s or 

REIT’s tax returns.

Revocation of Election

Once the TRS election is made, it is 

irrevocable unless both the corporation 

and the REIT consent to the revocation. 

Notify the IRS of the revocation by jointly 

filing a new Form 8875, and writing the 

word “REVOCATION” across the top of 

the form. Complete Parts I and II and 

provide both signatures. This revocation 

does not require IRS consent. The 

revocation is effective on the date the 

new Form 8875 is filed.

If the employer identification number 

(EIN) of the TRS changes as a result of a 

change in status (for example, a merger), 

the election is automatically terminated. 

A new election must be made using the 

new EIN.

Specific Instructions

Address

Include the suite, room, or other unit 

number after the street address. If the 

Post Office does not deliver to the street 

address and the corporation has a P.O. 

box, show the box number instead of the 

street address.

If the electing REIT has the same 

address as the TRS, enter “Same as 

corporation” in Part II.

If either the TRS or the electing REIT 

changes its mailing address or 

responsible party after the election is 

filed, it should notify the IRS by filing 

Form 8822-B, Change of Address or 

Responsible Party—Business.

Employer Identification 

Number (EIN)

Enter the TRS’s EIN. If the TRS does not 

have an EIN, it must apply for one. An 

EIN can be applied for:

• Online—Click on the Employer ID 

Numbers link at www.irs.gov/businesses. 

The EIN is issued immediately once the 

application information is validated.

• By mailing or faxing Form SS-4, 

Application for Employer Identification 

Number.

If the TRS has not received its EIN by 

the time the return is due, enter “Applied 

for” in the space for the EIN. For more 

details, see Pub. 583.

If the securities of a corporation are 

owned directly or indirectly by more than 

one electing REIT, each electing REIT 

seeking to treat the corporation as a 

taxable REIT subsidiary must file a 

separate Form 8875.

Line 11

The effective date of the TRS election 

entered on line 11 cannot be more than:

1. Two months and 15 days prior to

the date of filing the election or

2. Twelve months after the date of

filing the election.

 If the election specifies a date earlier 

than the date in 1 above, it will be 

treated as being effective 2 months and 

15 days prior to the date of filing the 

election. If the election specifies a date 

later than the date in 2 above, it will be 

treated as being effective 12 months 

after the date of filing the election.

If no date is specified, the election is 

effective on the date Form 8875 is filed.

Line 16

A TRS that directly or indirectly owns 

35% of the total voting power or value of 

the outstanding securities of a 

corporation (other than a REIT) must 

attach a statement to Form 8875 with 

the name and EIN of that corporation. 

Under section 856(l), this corporation 

also will be treated as a TRS of the REIT 

named in Part II.

If at the time that an election is filed on 

Form 8875, the TRS named in Part I 

directly or indirectly owns less than 35% 

of the total voting power or value of the 

outstanding securities of another 

corporation and subsequently acquires 

securities in that corporation that will 

result in an ownership interest of 35% or 

more, the TRS and REIT that filed Form 

8875 must file a copy of Form 8875 

marked “Automatic Taxable REIT 

Subsidiary” at the top of the form and 

attach a statement including the name 

and EIN of the new lower tier TRS. The 

new Form 8875 must be filed in the 

same manner as the original Form 8875 

within 30 days of the end of the quarter 

of the REIT’s tax year in which the lower 

tier corporation became a TRS.

 If the 35% interest is not the result of 

an acquisition, no filing is necessary.

Example. REIT and Corporation X 

jointly filed Form 8875 on January 15, 

2014, with an effective date of January 

1, 2014. On the date that Form 8875 

was filed, Corporation X owned 30% of 

the outstanding voting securities of

Corporation Y. On March 15, 2014,

Corporation X acquired an additional

10% of the outstanding voting securities

of Corporation Y. Under section 856(l)(2),

Corporation Y will be treated as a TRS of 

the REIT effective March 15, 2014. The 

REIT and Corporation X must jointly file a 

copy of their previously filed Form 8875 

marked “Automatic Taxable REIT

Subsidiary” at the top and attach a

statement including the name and EIN of

Corporation Y within 30 days of the end

of the quarter of the REIT’s tax year in

which Corporation Y became a TRS.

Signature

Form 8875 must be signed by persons 

authorized to sign the tax returns of the 

TRS and the electing REIT.

Paperwork Reduction Act Notice. We

ask for the information on this form to

carry out the Internal Revenue laws of

the United States. You are required to

give us the information. We need it to

ensure that you are complying with these 

laws.

You are not required to provide the 

information requested on a form that is 

subject to the Paperwork Reduction Act 

unless the form displays a valid OMB 

control number. Books or records 

relating to a form or its instructions must 

be retained as long as their contents 

may become material in the 

administration of any Internal Revenue 

law. Generally, tax returns and return 

information are confidential, as required 

by section 6103.

The time needed to complete and file 

this form will vary depending on 

individual circumstances. The estimated 

average time is:

Recordkeeping . . . . 6 hr., 56 min.

Learning about the 

law or the form . . . . . . 18 min.

Preparing, copying, and 

sending the form to 

the IRS . . . . . . . . 25 min.

If you have comments concerning the 

accuracy of these time estimates or 

suggestions for making this form 

simpler, we would be happy to hear from 

you. You can write to the Internal 

Revenue Service, Tax Forms and 

Publications Division, 1111 Constitution 

Ave., NW, IR-6526, Washington, DC 

20224.

Do not send the form to this address. 

Instead, see Where To File above.