§ 859. Adoption of annual accounting period

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1976

   Pub. L. 94–455 title XVI § 1604(i)(1) · 90 Stat. 1520

   Enacted · 26 U.S.C. § 859

   Added Pub. L. 94–455, title XVI, § 1604(i)(1), Oct. 4, 1976, 90 Stat. 1752, § 860

   Source evidence

   Code source credit
   Added Pub. L. 94–455, title XVI, § 1604(i)(1), Oct. 4, 1976, 90 Stat. 1752, § 860

   Enacted provision · exact public law section
   (1) Part II of subchapter M of chapter 1 (relating to real estate investment trusts) is amended by adding at the end thereof the following new section: “SEC. 860. ADOPTION OF ANNUAL ACCOUNTING PERIOD. “For purposes of this subtitle, a real estate investment trust shall not change to or adopt any annual accounting period other than the calendar year.”

2. 1978

   Pub. L. 95–600 § 701(t)(1) · 92 Stat. 2763

   1. Amended · 26 U.S.C. § 859

      Pub. L. 95–600, § 701(t)(1), designated existing provisions as par. (1)

   2. Substituted · 26 U.S.C. § 859

      Pub. L. 95–600, § 701(t)(1), substituted “change to any accounting period” for “change to or adopt any annual accounting period”

   3. Added · 26 U.S.C. § 859

      Pub. L. 95–600, § 701(t)(1), added par. (2) and provision for nonapplicability of par. (2) to a real estate investment trust for any taxable year beginning on or before Oct. 4, 1976

   Source evidence

   Code amendment note
   Pub. L. 95–600, § 701(t)(1), designated existing provisions as par. (1), substituted “change to any accounting period” for “change to or adopt any annual accounting period”, and added par. (2) and provision for nonapplicability of par. (2) to a real estate investment trust for any taxable year beginning on or before Oct. 4, 1976.

   Enacted provision · exact public law section
   (1) Annual accounting period.— Section 859 (relating to 26 USC 859. adoption of annual accounting period), as redesignated by the Act, is further amended to read as follows: “SEC. 859. ADOPTION OF ANNUAL ACCOUNTING PERIOD. “For purposes of this subtitle— “(1) a real estate investment trust shall not change to any accounting period other than the calendar year, and “(2) a corporation, trust, or association may not elect to be a real estate investment trust for any taxable year beginning after October 4, 1976, unless its accounting period is the calendar year. Paragraph (2) shall not apply to a corporation, trust, or association which was considered to be a real estate investment trust for any taxable year beginning on or before October 4, 1976.”

3. 1986

   Tax Reform Act of 1986

   Pub. L. 99–514 title VI § 661(c) · 100 Stat. 2085

   1. Amended · 26 U.S.C. § 859

      Pub. L. 99–514 designated existing provisions as subsec. (a)

   2. Added · 26 U.S.C. § 859

      Pub. L. 99–514 added subsec. (b)

   Source evidence

   Code amendment note
   Pub. L. 99–514 designated existing provisions as subsec. (a) and added subsec. (b).

   Enacted provision · exact public law section
   (c) Initial Change in Annual Accounting Period Permitted.— (1) Section 859 is amended by adding at the end thereof the following new subsection: “(b) Change of Accounting Period Without Approval.— Notwithstanding section 442, an entity which has not engaged in any active trade or business may change its accounting period to a calendar year without the approval of the Secretary if such change is in connection with an election under section 856(c).” (2) Section 859 is amended by striking out “For purposes of” and inserting in lieu thereof “(a) General Rule.—for purposes of”.

   Effective date note
   Amendment by Pub. L. 99–514 applicable to taxable 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.

6 of 6 references resolved to an enrolled provision