SECTION 4. APPLICATION

.01 Pursuant to § 856(c)(5)(J)(ii), any amounts required to be included in gross income by a REIT under §§ 951(a)(1)

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how may a REIT treat amounts required to be included in gross income under §§ 951(a)(1) (except by reason of § 965), 951A(a), 1291(a), 1293(a)(1), 1296(a), and amounts required to be taken into account under § 986(c) as foreign currency gain with respect to distributions of previously taxed earnings and profits. See Rev. Proc. 2018–48, page 521.

Section 1293.—Election of mark to market for marketable stock

For purposes of determining whether a real estate investment trust (REIT) satisfies the gross income test in § 856(c)(2) of the Internal Revenue Code, how may a REIT treat amounts required to be included in gross income under §§ 951(a)(1) (except by reason of § 965), 951A(a), 1291(a), 1293(a)(1), 1296(a), and amounts required to be taken into account under § 986(c) as foreign currency gain with respect to distributions of previously taxed earnings and profits. See Rev. Proc. 2018–48, page 521.

Section 1296.—Interest on tax deferral

For purposes of determining whether a real estate investment trust (REIT) satisfies the gross income test in § 856(c)(2) of the Internal Revenue Code, how may a REIT treat amounts required to be included in gross income under §§ 951(a)(1) (except by reason of § 965), 951A(a), 1291(a), 1293(a)(1), 1296(a), and amounts required to be taken into account under § 986(c) as foreign currency gain with respect to distributions of previously taxed earnings and profits. See Rev. Proc. 2018–48, page 521.

Extension of the Phase-in Period for the Enforcement and Administration of Section 871(m)

Notice 2018–72

I. PURPOSE

This Notice provides taxpayers with additional guidance for complying with the final and temporary regulations under sections 871(m), 1441, 1461, and 1473 of the Internal Revenue Code (the Code) (collectively referred to as the section 871(m) regulations) in 2019, ¹ 2020, and 2021. Specifically, this Notice announces that the Department of the Treasury (Trea

(except by reason of § 965), 951A(a), 1291(a), 1293(a)(1), or 1296(a) are treated as qualifying income for purposes of § 856(c)(2).

.02 Pursuant to § 856(n)(3)(C), any amounts required to be taken into account by a REIT under § 986(c) as foreign currency gain with respect to distributions of previously taxed earnings and profits (as described in § 959 or § 1293(c)) are considered passive foreign exchange gain (as defined in § 856(n)(3)) and, therefore, pursuant to § 856(n)(1)(A), do not constitute gross income for purposes of § 856(c)(2).