IT-REIT: Captive Real Estate Investment Trust (Revision 2010-12)
Georgia · Georgia DOR · Used for tax years 2024, 2025, 2026
Georgia Form IT-REIT reports captive real estate investment trust (REIT) expenses and costs that must be added back to income, along with amounts eligible for exceptions. It calculates the total exception amount to report as a subtraction on the tax return.
Who files this form
Form IT-REIT is for taxpayers reporting captive real estate investment trust (REIT) expenses and costs required to be added back to income under Code § 48-7-28.4 and Regulation 560-7-3-.04. It also provides sections for claiming exceptions to that addback.
The form requires taxpayers to add back captive REIT costs before claiming any exception.
What you'll need
Have the following information and schedules ready:
- Taxpayer name, address, federal identification number, and taxable year beginning and ending dates.
- The amount of captive REIT expenses and costs required to be added back.
- For Section C, a separate schedule for each captive REIT, including its name, federal identification number, costs paid directly or indirectly to it, state tax information, and applicable apportionment ratios.
- An additional schedule for Section C questions 4 through 9 if more than four states are involved.
- A brief description of the arm’s length status of transactions between the taxpayer and the captive REIT.
- For Section D, a separate schedule for each related member and a schedule breaking down costs by type of expense.
Common mistakes
- Claiming an exception before adding back costs. The form says to add captive REIT costs back to income first.
- Including excluded jurisdictions in Section C. Do not include jurisdictions where the captive REIT costs are subject to elimination.
- Failing to reduce Section C, line 6. Reduce the amount by the captive REIT’s dividends paid deduction and expenses paid, accrued, or incurred to persons who are not related members.
- Claiming exceptions above the addback. Total exceptions reported on the tax return through Form IT-REIT, including additional schedules, cannot exceed Section B, line 1.
Questions people ask
Where do I report the addback on my tax return?
Enter the amount from Section B, line 1 on the applicable line in the tax return’s Georgia “additions to federal taxable income” section.
How do I enter the apportionment ratio in Section C?
Enter the ratio to six decimal places on line 7. If the captive REIT cost was allocated in full to a state, enter “1” for that state.
What must I certify if Section D includes depreciation?
You must answer whether the related assets were purchased from a person who was not a related member, or purchased or received from a related member in an arm’s length transaction, and whether the assets were legally transferred to the captive REIT.
How do I calculate and report the total exception?
In Section E, add Section C, line 9 and Section D, line 1, including amounts from those same lines on attached separate schedules. Enter the total on the applicable line in the tax return’s Georgia subtractions from income section. Total exceptions cannot exceed Section B, line 1.