[Code of Federal Regulations]
[Title 26, Volume 9]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.857-8]

[Page 83-84]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.857-8  Records to be kept by a real estate investment trust.

    (a) In general. Under section 857(a)(2) a real estate investment 
trust is required to keep such records as will disclose the actual 
ownership of its outstanding stock. Thus, every real estate investment 
trust shall maintain in the internal revenue district in which it is 
required to file its income tax return permanent records showing the 
information relative to the actual owners of its stock contained in the 
written statements required by this section to be demanded from its 
shareholders. Such records shall be kept at all times available for 
inspection by any internal revenue officer or employee, and shall be 
retained so long as the contents thereof may become material in the 
administration of any internal revenue law.
    (b) Actual owner of stock. The actual owner of stock of a real 
estate investment trust is the person who is required to include in 
gross income in his return the dividends received on the stock. 
Generally, such person is the shareholder of record of the real estate 
investment trust. However, where the shareholder of record is not the 
actual owner of the stock, the stockholding record of the real estate 
investment trust may not disclose the actual ownership of such stock. 
Accordingly, the real estate investment trust shall demand written 
statements from shareholders of record disclosing the actual owners of 
stock as required in paragraph (d) of this section.
    (c) Stock ownership for personal holding company determination. For 
the purpose of determining under section 856(a)(6) whether a trust, 
claiming to be a real estate investment trust, is a personal holding 
company, the permanent records of the trust shall show the

[[Page 84]]

maximum number of shares of the trust (including the number and face 
value of securities convertible into stock of the trust) to be 
considered as actually or constructively owned by each of the actual 
owners of any of its stock at any time during the last half of the 
trust's taxable year, as provided in section 544.
    (d) Statements to be demanded from shareholders. The information 
required by paragraphs (b) and (c) of this section shall be set forth in 
written statements which shall be demanded from shareholders of record 
as follows:
    (1) In the case of a trust having 2,000 or more shareholders of 
record of its stock on any dividend record date, from each record holder 
of 5 percent or more of its stock; or
    (2) In the case of a trust having less than 2,000 and more than 200 
shareholders of record of its stock on any dividend record date, from 
each record holder of 1 percent or more of its stock; or
    (3) In the case of a trust having 200 or less shareholders of record 
of its stock on any dividend record date, from each record holder of 
one-half of 1 percent or more of its stock.
    (e) Demands for statements. The written statements from shareholders 
of record shall be demanded by the real estate investment trust in 
accordance with paragraph (d) of this section within 30 days after the 
close of the real estate investment trust's taxable year (or before June 
1, 1962, whichever is later). When making demand for such written 
statements, the trust shall inform each such shareholder of his duty to 
submit at the time he files his income tax return (or before July 1, 
1962, whichever is later) the statements which are required by Sec. 
1.857-9 if he fails or refuses to comply with such demand. A list of the 
persons failing or refusing to comply in whole or in part with the 
trust's demand for statements under this section shall be maintained as 
a part of the trust's records required by this section. A trust which 
fails to keep such records to show, to the extent required by this 
section, the actual ownership of its outstanding stock shall be taxable 
as an ordinary corporation and not as a real estate investment trust.

(Sec. 856(d)(4) (90 Stat. 1750; 26 U.S.C. 856(d)(4)); sec. 856(e)(5) (88 
Stat. 2113; 26 U.S.C. 856(e)(5)); sec. 856(f)(2) (90 Stat. 1751; 26 
U.S.C. (856(f)(2)); sec. 856(g)(2) (90 Stat. 1753; 26 U.S.C. 856(g)(2)); 
sec. 858(a) (74 Stat. 1008; 26 U.S.C. 858(a)); sec. 859(c) (90 Stat. 
1743; 26 U.S.C. 859(c)); sec. 859(e) (90 Stat. 1744; 26 U.S.C. 859(e)); 
sec. 6001 (68A Stat. 731; 26 U.S.C. 6001); sec. 6011 (68A Stat. 732; 26 
U.S.C. 6011); sec. 6071 (68A Stat. 749, 26 U.S.C. 6071); sec. 6091 (68A 
Stat. 752; 26 U.S.C. 6091); sec. 7805 (68A Stat. 917; 26 U.S.C. 7805), 
Internal Revenue Code of 1954))

[T.D. 6598, 27 FR 4088, Apr. 28, 1962. Redesignated and amended by T.D. 
7767, 46 FR 11277 and 11279, Feb. 6, 1981]