Captive REIT Disclosure (F1320201): Captive REIT Disclosure Form (Revision 2021-09)
Tennessee · Tennessee DOR · Used for tax years 2024, 2025, 2026
Tennessee’s Captive REIT Disclosure form reports dividends a financial institution received directly or indirectly from captive real estate investment trusts. It identifies each REIT, its principal business activity, and its ownership relationship to the taxpayer, with an attache
Who files this form
Any financial institution that receives dividends, directly or indirectly, from one or more captive real estate investment trusts (REITs) must complete this disclosure.
For this disclosure, a captive REIT is an entity that:
- Has an election in effect under 26 U.S.C. § 856(c)(1).
- Is at least 80% owned by value, directly or indirectly, by the financial institution, as determined under generally accepted accounting principles.
- Has shares that are not traded on a national stock exchange.
When it's due
For taxable years 2024, 2025, and 2026, this disclosure must be filed with Form FAE174. Form FAE174 is due on the 15th day of the 4th month following the close of the taxable year.
What you'll need
Have the following information ready:
- The taxable period shown on the Franchise and Excise Financial Institution Tax Return.
- The taxpayer’s legal name and nine-digit franchise and excise tax account number or FEIN.
- Whether the taxpayer requested and received a binding letter ruling about the captive REITs being disclosed.
- Each REIT’s legal name, FEIN, and principal office or place of business address.
- The amount of dividends received directly or indirectly from each REIT.
- Complete descriptions of each REIT’s principal business activity and its relationship to the taxpayer.
Attach an organizational chart showing the REIT’s ownership. If ownership is indirect, show the ownership from the REIT to the taxpayer.
How to file
- Enter the taxpayer’s taxable period, legal name, and account number or FEIN.
- Check Yes or No to indicate whether the taxpayer requested and received a binding letter ruling about the disclosed captive REITs.
- Complete a separate REIT Disclosure section for each captive REIT from which the taxpayer received dividends, directly or indirectly, during the taxable year. Attach additional forms as needed.
- Attach an organizational chart showing ownership.
- File the disclosure with Form FAE174.
The provided text does not specify a mailing address or an e-file method.
Common mistakes
- Failing to file the disclosure. The form warns that this will result in disallowance of the 80%-owned dividends received deduction for direct or indirect dividends received from a captive REIT.
- Failing to disclose a captive REIT dividend. The form warns of a penalty equal to 50% of any underpayment arising from disallowance of that deduction.
Questions people ask
Do I need to disclose dividends received indirectly?
Yes. Complete a REIT Disclosure section for each captive REIT from which the taxpayer received dividends directly or indirectly during the taxable year.
What if I need more space for additional REITs?
Attach additional forms as needed.
Which address should I enter for a REIT?
Use the address of the REIT’s principal office or place of business.
What ownership information must I provide?
Describe the taxpayer’s relationship to the captive REIT and attach an organizational chart showing ownership. For an indirectly owned REIT, show the ownership from the REIT to the taxpayer.
Does requesting a ruling mean I should check Yes?
The checkbox asks whether the taxpayer has both requested and received a binding letter ruling pertaining to the captive REITs disclosed on the form.