Report a real estate holding company (including a REIT) and income produced by the company in Part 6. 

Do not use this entry to report a mutual fund that holds REITs.  See the entry for mutual funds instead.  In addition, if you operate a trade or business involving real estate, see the entry for small businesses.

Real Estate Holding Company Qualifies as an EIF

Real Estate Holding Company Does Not Qualify as an EIF – If you know the value of and income from the underlying assets

Real Estate Holding Company Does Not Qualify as an EIF – If you know the value of the underlying assets but the income from those assets is not readily ascertainable

Real Estate Holding Company Does Not Qualify as an EIF – If the value of and income from the underlying assets are not readily ascertainable

For You, Your Spouse, and Your Dependent Children

Part 6

Report an equity interest in a real estate holding company (including a REIT) if the value of the interest was more than $1,000 at the end of the reporting period or if more than $200 in total income was received during the reporting period.

The reporting requirements will depend on whether the real estate holding company qualifies as an excepted investment fund.  Real estate holding companies that may qualify include real estate investment trusts (REITs), as well as private equity and real estate hedge funds that are or were publicly available.

Real Estate Holding Company Qualifies as an EIF

Description:  Provide the name of the real estate holding company and, unless clear from the name that you are reporting a real estate holding company, describe the type of asset.

EIF:  Select “Yes.”

Value:  Report the value of the real estate holding company by selecting the appropriate category.

Income Type:  Leave this field blank.

Income Amount:  Select the category that corresponds to the total amount of income received during the reporting period.

Real Estate Holding Company Does Not Qualify as an EIF

Description:  Provide the name of the real estate holding company and, unless clear that you are reporting a real estate holding company, describe the type of asset.

EIF:  Select “No” for the real estate holding company.

Additional Disclosure of Underlying Assets:  Because the real estate holding company does not qualify as an EIF, you need to report each underlying asset of the real estate holding company that was worth more than $1,000 at the end of the reporting period or from which more than $200 in income was received during the reporting period.

For purposes of valuing an underlying asset, you may use the value of the proportionate interest that you, your spouse, and your dependent children have in the underlying asset.  For purposes of measuring income from an underlying asset, you may use the amount of income received from that underlying asset that is attributable to you, your spouse, and your dependent children.

In certain cases, real estate holding companies do not provide information regarding an investor’s interest in the value and/or income of the entity’s underlying assets.  If you are unable to ascertain the value of the underlying assets, you may instead provide value information for the total interest that you, your spouse, and your dependent children have in the real estate holding company.  Similarly, if you are unable to ascertain the income from the underlying assets, you may instead provide income information for the total interest that you, your spouse, and your dependent children have in the real estate holding company.

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