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Title 26 — Internal Revenue CodeRelease 119-73

§858 Dividends paid by real estate investment trust after close of taxable year

Title 26 › Subtitle Subtitle A— - Income Taxes › Chapter CHAPTER 1— - NORMAL TAXES AND SURTAXES › Subchapter Subchapter M— - Regulated Investment Companies and Real Estate Investment Trusts › Part PART II— - REAL ESTATE INVESTMENT TRUSTS › § 858

Last updated Apr 6, 2026|Official source

Summary

If a real estate investment trust (REIT) declares a dividend before the deadline for filing its tax return (including any extension), and then pays that dividend to shareholders within 12 months after the end of the tax year and by the first regular dividend payment after the declaration, the dividend is counted as received by the shareholder in the year it was actually paid. Except as provided in section 857(b)(9), that is how those amounts are treated for tax purposes. The REIT must notify its shareholders about those paid amounts no later than 30 days after the tax year ends, or it can include the notice with the REIT’s annual report for that year.

Full Legal Text

Title 26, §858

Internal Revenue Code — Source: USLM XML via OLRC

(a)For purposes of this part, if a real estate investment trust—
(1)declares a dividend before the time prescribed by law for the filing of its return for a taxable year (including the period of any extension of time granted for filing such return), and
(2)distributes the amount of such dividend to shareholders or holders of beneficial interests in the 12-month period following the close of such taxable year and not later than the date of the first regular dividend payment made after such declaration,
(b)Except as provided in section 857(b)(9), amounts to which subsection (a) applies shall be treated as received by the shareholder or holder of a beneficial interest in the taxable year in which the distribution is made.
(c)In the case of amounts to which subsection (a) applies, any notice to shareholders or holders of beneficial interests required under this part with respect to such amounts shall be made not later than 30 days after the close of the taxable year in which the distribution is made (or mailed to its shareholders or holders of beneficial interests with its annual report for the taxable year).

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

2014—Subsec. (b). Pub. L. 113–295 substituted “857(b)(9)” for “857(b)(8)”. 1988—Subsec. (b). Pub. L. 100–647, § 1018(u)(27), made technical correction to directory language of Pub. L. 99–514, see 1986 Amendment note below. 1986—Subsec. (b). Pub. L. 99–514, § 668(b)(1)(B), as amended by Pub. L. 100–647, § 1018(u)(27), substituted “Except as provided in section 857(b)(8), amounts” for “Amounts”. Subsec. (c). Pub. L. 99–514, § 665(b)(2), inserted “(or mailed to its shareholders or holders of beneficial interests with its annual report for the taxable year)”. 1976—Subsec. (a). Pub. L. 94–455, §§ 1604(h), 1906(b)(13)(A), inserted “(and specifies in dollar amounts)” after “to the extent the trust elects in such return” and substituted “paid only during such taxable year” for “paid during such taxable year”, and struck out “or his delegate” after “Secretary”.

Statutory Notes and Related Subsidiaries

Effective Date

of 1988 AmendmentAmendment by Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 1019(a) of Pub. L. 100–647, set out as a note under section 1 of this title.

Effective Date

of 1986 AmendmentAmendment by section 665(b)(2) of Pub. L. 99–514 applicable to taxable years beginning after Dec. 31, 1986, and by section 668(b)(1)(B) of Pub. L. 99–514 applicable to calendar 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 1976 AmendmentFor

Effective Date

of amendment by section 1604(h) of Pub. L. 94–455, see section 1608(d) of Pub. L. 94–455, set out as a note under section 856 of this title.

Effective Date

Section applicable with respect to taxable years of real estate investment trusts beginning after Dec. 31, 1960, see section 10(k) of Pub. L. 86–779, set out as a note under section 856 of this title.

Reference

Citations & Metadata

Citation

26 U.S.C. § 858

Title 26 — Internal Revenue Code

Last Updated

Apr 6, 2026

Release point: 119-73