Internal Revenue Bulletin: 2011-5
January 31, 2011
This procedure provides a safe harbor to real estate investment trusts (REITs) with respect to how interest on certain loans secured by real estate that have been modified in response to default or reasonably foreseeable default will be treated for purposes of the income tests under sections 856(c)(2) and (3) of the Code. This procedure also provides a safe harbor regarding the treatment of certain mortgage loans for purposes of the 75 percent asset test under section 856(c)(4)(A).
This procedure allows a retailer that issues gift cards in exchange for returned goods to treat the transactions as (1) the payment of a cash refund in the amount of the gift card, and (2) the sale of a gift card in the amount of the gift card. Rev. Proc. 2008-52 modified.
This procedure allows taxpayers to defer recognizing in gross income advance payments received from the sale of gift cards that are redeemable for goods or services of the taxpayer or a third party. Rev. Proc. 2004-34 modified and clarified.
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