81 FR 41800 - Certain Transfers of Property to Regulated Investment Companies [RICs] and Real Estate Investment Trusts [REITs]; Correction

DEPARTMENT OF THE TREASURY
Internal Revenue Service

Federal Register Volume 81, Issue 124 (June 28, 2016)

This document contains a correction to final and temporary regulations (TD 9770) that were published in the Federal Register on June 8, 2016 (81 FR 36793). The final and temporary regulations effect the repeal of the General Utilities doctrine by the Tax Reform Act of 1986 and prevent abuse of the Protecting Americans from Tax Hikes Act of 2015. The temporary regulations impose corporate level tax on certain transactions in which property of a C corporation becomes the property of a REIT.

[Federal Register Volume 81, Number 124 (Tuesday, June 28, 2016)]
[Rules and Regulations]
[Page 41800]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-15264]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9770]
RIN 1545-BN39


Certain Transfers of Property to Regulated Investment Companies 
[RICs] and Real Estate Investment Trusts [REITs]; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final and temporary regulations; correcting amendment.

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SUMMARY: This document contains a correction to final and temporary 
regulations (TD 9770) that were published in the Federal Register on 
June 8, 2016 (81 FR 36793). The final and temporary regulations effect 
the repeal of the General Utilities doctrine by the Tax Reform Act of 
1986 and prevent abuse of the Protecting Americans from Tax Hikes Act 
of 2015. The temporary regulations impose corporate level tax on 
certain transactions in which property of a C corporation becomes the 
property of a REIT.

DATES: This correction is effective on June 28, 2016 and applicable on 
June 8, 2016.

FOR FURTHER INFORMATION CONTACT: Austin M. Diamond-Jones at (202) 317-
5085 (not a toll free number).

SUPPLEMENTARY INFORMATION:

Background

    The final and temporary regulations (TD 9770) that are the subject 
of this correction are under section 337(d) of the Internal Revenue 
Code.

Need for Correction

    As published, the final and temporary regulations (TD 9770) contain 
an error that may prove to be misleading and is in need of 
clarification.

List of Subjects in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

Correction of Publication

    Accordingly, 26 CFR part 1 is corrected by making the following 
correcting amendment:

PART 1--INCOME TAXES

0
Paragraph 1. The authority citation for part 1 continues to read in 
part as follows:

    Authority:  26 U.S.C. 7805 * * *


0
Par. 2. Section 1.337(d)-7T is amended by revising paragraph 
(f)(3)(iii) to read as follows:


Sec.  1.337(d)-7T  Tax on property owned by a C corporation that 
becomes property of a RIC or REIT.

* * * * *
    (f) * * *
    (3) * * *
    (iii) The related section 355 distribution occurred before December 
7, 2015 or is described in a ruling request referred to in section 
311(c) of Division Q of the Consolidated Appropriations Act, 2016, 
Public Law 114-113, 129 Stat. 2422.
* * * * *

Martin V. Franks,
Chief, Publications and Regulations Branch, Legal Processing Division, 
Associate Chief Counsel (Procedure and Administration).
[FR Doc. 2016-15264 Filed 6-27-16; 8:45 am]
 BILLING CODE 4830-01-P