# 26 U.S.C. § 859: Adoption of annual accounting period

Source: OLRC release point 119-134 <https://uscode.house.gov/us/usc/119-134/t26/s859>. Cite pinpoints as 26 U.S.C. § 859(a)(1).

## § 859(a) General rule

For purposes of this subtitle—

**§ 859(a)(1)** a real estate investment trust shall not change to any accounting period other than the calendar year, and

**§ 859(a)(2)** a corporation, trust, or association may not elect to be a real estate investment trust for any taxable year beginning after October 4, 1976, unless its accounting period is the calendar year.

Paragraph (2) shall not apply to a corporation, trust, or association which was considered to be a real estate investment trust for any taxable year beginning on or before October 4, 1976.

## § 859(b) Change of accounting period without approval

Notwithstanding section 442, an entity which has not engaged in any active trade or business may change its accounting period to a calendar year without the approval of the Secretary if such change is in connection with an election under section 856(c).

## Connections

Cites: § 442 Change of annual accounting period; § 856 Definition of real estate investment trust

Cited by: none

## Prior provisions

- A prior section 859, added Pub. L. 94–455, title XVI, § 1601(a)(1), Oct. 4, 1976, 90 Stat. 1742; amended Pub. L. 95–600, title VII, § 701(t)(4), Nov. 6, 1978, 92 Stat. 2912, related to a deduction for deficiency dividends, prior to repeal by Pub. L. 95–600, title III, § 362(d)(6), Nov. 6, 1978, 92 Stat. 2852. See section 860 of this title.

## Amendments

- 1976-10-04: [Pub. L. 94-455](/26/act/94-455.md), 90 Stat. 1752
- 1978-11-06: [Pub. L. 95-600](/26/act/95-600.md), 92 Stat. 2852
- 1986-10-22: [Pub. L. 99-514](/26/act/99-514.md), 100 Stat. 2300