§ 105-130.12. Real estate investment trusts. - North Carolina Statutes

§ 105‑130.12.  Realestate investment trusts.

(a)        Definitions. – Thefollowing definitions apply in this section:

(1)        Captive REIT. – AREIT whose shares or certificates of beneficial interest are not regularlytraded on an established securities market and are owned or controlled, at anytime during the last half of the tax year, by a person that is subject to taxunder this Part and is not a REIT or a listed Australian property trust.

(2)        Own or control. – Toown or control directly, indirectly, beneficially, or constructively more thanfifty percent (50%) of the voting power or value of an entity. The attributionrules of section 318 of the Code, as modified by section 856(d)(5) of the Code,apply in determining ownership and control.

(3)        REIT. – A trust oranother entity that qualifies as a real estate investment trust under section856 of the Code.

(b)        Tax. – The incomeof a REIT is taxable under this Part in accordance with the Code, unless theREIT is a captive REIT. A captive REIT is required to add to its federaltaxable income the amount of a dividend paid deduction allowed under the Code,as provided in G.S. 105‑130.5. (1963, c. 1169, s. 2; 1967, c. 110, s. 3; 1971, c.820, s. 2; 1973, c. 476, s. 193; 1983, c. 713, s. 74; 1998‑98, s. 69;2007‑323, s. 31.18(c).)