Federal Register, Volume 81 Issue 193 (Wednesday, October 5, 2016)


[Federal Register Volume 81, Number 193 (Wednesday, October 5, 2016)]
[Rules and Regulations]
[Page 68934]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-23991]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9784]
RIN 1545-BM05


Definition of Real Estate Investment Trust Real Property;
Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendment.

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SUMMARY: This document contains corrections to final regulations (TD
9784) that were published in the Federal Register on Wednesday, August
31, 2016 (81 FR 59849). The final regulations that clarify the
definition of real property for purposes of real estate investment
trust provisions of the Internal Revenue Code (Code).

DATES: This correction is effective October 5, 2016 and is applicable
on or after August 31, 2016.

FOR FURTHER INFORMATION CONTACT: Julanne Allen of the Office of
Associate Chief Counsel (Financial Institutions and Products) at (202)
317-6945 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

The final regulations (TD 9784) that are the subject of this
correction are under section 856 of the Internal Revenue Code.

Need for Correction

As published, the final regulations (TD 9784) contain errors that
may prove to be misleading and are in need of clarification.

List of Subjects in 26 CFR Part 1

Income taxes, Reporting and recordkeeping requirements.

Correction of Publication

Accordingly, 26 CFR part 1 is corrected by making the following
correcting amendments:

PART 1--INCOME TAXES

0
Paragraph 1. The authority citation for part 1 continues to read in
part as follows:

Authority: 26 U.S.C. 7805 * * *


0
Par. 2. Section 1.856-10(g) is amended by revising the first sentence
of Example 10 paragraph (iv) and revising the fourth sentence of
Example 10 paragraph (v) to read as follows:


Sec. 1.856-10 Definition of real property.

* * * * *
(g) * * *
Example 10. * * *
* * * * *
(iv) The factors described in this paragraph (g) Example 10
(iii)(A) through (C) and (iii)(E) through (H) support the conclusion
that the isolation valves and vents and pressure control and relief
valves are structural components of REIT J's pipelines within the
meaning of paragraph (d)(3) of this section and, therefore, are real
property. * * *
* * * * *
(v) * * * The meters and compressors do not serve the pipelines
in their passive function of providing a conduit for the natural
gas, and are used in connection with the production of income from
the sale and transportation of natural gas, rather than as
consideration for the use or occupancy of space within the
pipelines.
* * * * *

Martin V. Franks,
Chief, Publications and Regulations Branch, Legal Processing Division,
Associate Chief Counsel (Procedure and Administration).
[FR Doc. 2016-23991 Filed 10-4-16; 8:45 am]
BILLING CODE 4830-01-P