Internal Revenue Code · 26 U.S.C.
§ 4981. Excise tax on undistributed income of real estate investment trusts
Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).
Cite as 26 U.S.C. § 4981
At a glance
Read from the text, the source credit and the official notes. Not part of the law.
- Status
- In force
- Added
- October 4, 1976 by Pub. L. 94–455
- Last amended
- November 10, 1988 by Pub. L. 100–647
- Amendments
- 2 dated changes in the source credit
- Length
- 5 subsections · 677 words · about 3 min to read
- Defines
- 4 terms
- Cross-references
- cites 5; cited by 1 Code section and 2 other regulations
- Regulations
- 1 issued under this section
The amount of the dividends paid during any calendar year shall be determined without regard to the provisions of section 858.
The tax imposed by this section for any calendar year shall be paid on or before March 15 of the following calendar year.
The term “capital gain net income” has the meaning given such term by section 1222(9) (determined by treating the calendar year as the trust’s taxable year).
The amount determined under subparagraph (A) shall be reduced by the amount of the trust’s net ordinary loss for the taxable year.
For purposes of this paragraph, the net ordinary loss for the calendar year is the amount which would be net operating loss of the trust for the calendar year if the amount of such loss were determined in the same manner as ordinary income is determined under paragraph (1).
(Added Pub. L. 94–455, title XVI, § 1605(a), Oct. 4, 1976, 90 Stat. 1754; amended Pub. L. 99–514, title VI, § 668(a), Oct. 22, 1986, 100 Stat. 2306; Pub. L. 100–647, title I, § 1006(s)(1), (3), Nov. 10, 1988, 102 Stat. 3418.)
Terms defined here
Where the text says “the term … means”. Select a term to jump to its definition.
Regulations under this section
Treasury regulations (26 CFR) issued under § 4981
Cross-references
Computed from the citations in the text of Title 26 and 26 CFR.
This section cites 5 other sections
- § 561 Definition of deduction for dividends paid
- § 857(b)(2)(D) Taxation of real estate investment trusts and their beneficiaries
- § 858 Dividends paid by real estate investment trust after close of taxable year
- § 1222(9) Other terms relating to capital gains and losses
- § 860(f) Deduction for deficiency dividends
Cited by 1 Code section
Cited in 2 regulations not issued under it
Amendment history
From the source credit and the official notes, newest first.
Where it sits in the Code
Nearby sections
- § 4981 Excise tax on undistributed income of real estate investment trusts
- § 4982 Excise tax on undistributed income of regulated investment companies
Official notes
Show the Law Revision Counsel's notes (amendments, effective dates)
Editorial Notes
References in Text
Subsection (b)(3)(A) of section 857, referred to in subsec. (c)(1)(B), was repealed and subsection (b)(3)(B) was redesignated (b)(3)(A) by Pub. L. 115–97, title I, § 13001(b)(2)(K)(i), Dec. 22, 2017, 131 Stat. 2096.
Amendments
1988—Subsec. (c)(1)(A). Pub. L. 100–647, § 1006(s)(3), inserted “(but computed without regard to that portion of such deduction which is attributable to the amount excluded under section 857(b)(2)(D)” after “such calendar year”.
Subsec. (e)(2). Pub. L. 100–647, § 1006(s)(1), amended par. (2) generally, designating existing provisions as subpar. (A) and adding subpars. (B) and (C).
1986—Pub. L. 99–514 substituted “Excise tax on undistributed income of real estate investment trusts” for “Excise tax based on certain real estate investment trust taxable income not distributed during the taxable year” as section catchline and amended text generally. Prior to amendment text read as follows: “Effective with respect to taxable years beginning after December 31, 1979, there is hereby imposed on each real estate investment trust for the taxable year a tax equal to 3 percent of the amount (if any) by which 75 percent of the real estate investment trust taxable income (as defined in section 857(b)(2), but determined without regard to section 857(b)(2)(B), and by excluding any net capital gain for the taxable year) exceeds the amount of the dividends paid deduction (as defined in section 561, but computed without regard to capital gains dividends as defined in section 857(b)(3)(C) and without regard to any dividend paid after the close of the taxable year) for the taxable year. For purposes of the preceding sentence, the determination of the real estate investment trust taxable income shall be made by taking into account only the amount and character of the items of income and deduction as reported by such trust in its return for the taxable year.”
Statutory Notes and Related Subsidiaries
Effective Date of 1988 Amendment
Amendment by Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 1019(a) of Pub. L. 100–647, set out as a note under section 1 of this title.
Effective Date of 1986 Amendment
Amendment by Pub. L. 99–514 applicable to calendar years beginning after Dec. 31, 1986, see section 669(b) of Pub. L. 99–514, set out as a note under section 856 of this title.