{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/974/10/#05-overview-and-background","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","topic":"974","topic_title":"Real Estate—Real Estate Investment Trusts","subtopic":"974-10","subtopic_title":"Overall","section":{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"974-10-05-1","para":"05-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">The Codification contains several Topics for real estate due to the differing accounting treatment for various real estate subindustries. The Topics include:<ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\">Real Estate—General</div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\">Real Estate—Common Interest Realty Associations</div></li><li class=\"li-norm\"><span class=\"linum\">c</span><div class=\"p\">Real Estate—Real Estate Investment Trusts</div></li><li class=\"li-norm\"><span class=\"linum\">d</span><div class=\"p\">Real Estate—Time-Sharing Activities</div></li><li class=\"li-norm\"><span class=\"linum\">e</span><div class=\"p\">Real Estate—Retail Land.</div></li></ol><div class=\"p\">See also Subtopic <a altsource=\"GUID-DEB4A805-0F16-411F-92EA-6269206682D5.ditamap\" class=\"ditamap\">842-40</a> for accounting guidance for the sale of real estate that is part of a sale-leaseback transaction.</div></div> </div>","snippet":"The Codification contains several Topics for real estate due to the differing accounting treatment for various real estate subindustries. The Topics include:\n(a) Real Estate—General\n(b) Real Estate—Common Interest Realty…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:47e61e2d0922fb3d501e481d5a75b5a17fcd9d4455665732842c0e55009cf72e","downloaded_from":"2026-09-10T02:26:28.336Z","last_downloaded_at":"2026-09-10T02:26:28.336Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482270","source_sha256":"f9b115bc96cb11ba8b939b90bc2c65a2e08aea1bf0003365bd14417ad61bab2b"}},{"citation":"974-10-05-2","para":"05-2","html":"<div class=\"asc-body\"><div class=\"norm-text\">The Real Estate—Real Estate Investment Trusts Topic addresses the unique accounting and reporting issues for real estate investment trusts. This Topic includes the following Subtopics:<ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\">Overall</div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\">Investments—Equity Method and Joint Ventures</div></li><li class=\"li-norm\"><span class=\"linum\">c</span><div class=\"p\"><a href=\"/updates/asu-2014-09/\" class=\"xref\">Subparagraph superseded by Accounting Standards Update No. 2014-09</a>.</div></li><li class=\"li-norm\"><span class=\"linum\">cc</span><div class=\"p\">Other Expenses</div></li><li class=\"li-norm\"><span class=\"linum\">d</span><div class=\"p\">Consolidation</div></li><li class=\"li-norm\"><span class=\"linum\">e</span><div class=\"p\">Interest</div></li><li class=\"li-norm\"><span class=\"linum\">f</span><div class=\"p\">Leases.</div></li></ol></div> </div>","snippet":"The Real Estate—Real Estate Investment Trusts Topic addresses the unique accounting and reporting issues for real estate investment trusts. This Topic includes the following Subtopics:\n(a) Overall\n(b) Investments—Equity …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3286dee1879ef64f0d4e8751386655fb5e961032f8103e94c29ef659aa345baf","downloaded_from":"2026-09-10T02:26:28.336Z","last_downloaded_at":"2026-09-10T02:26:28.336Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482270","source_sha256":"f9b115bc96cb11ba8b939b90bc2c65a2e08aea1bf0003365bd14417ad61bab2b"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:45f92fbf89094eb463e9a1416575fe9d24c9221cec345bd43ebba4e662cada35","downloaded_from":"2026-09-10T02:26:28.336Z","last_downloaded_at":"2026-09-10T02:26:28.336Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482270","source_sha256":"f9b115bc96cb11ba8b939b90bc2c65a2e08aea1bf0003365bd14417ad61bab2b"}},{"block":null,"heading":"Tax Considerations","paragraphs":[{"citation":"974-10-05-3","para":"05-3","html":"<div class=\"asc-body\"><div class=\"norm-text\">The tax considerations included here represent an understanding of the Internal Revenue Code requirements and practices at the time that the accounting and reporting standards were initially issued. The Financial Accounting Standards Board (FASB) assumes no responsibility for the accuracy of the tax guidance included here.</div> </div>","snippet":"The tax considerations included here represent an understanding of the Internal Revenue Code requirements and practices at the time that the accounting and reporting standards were initially issued. The Financial Account…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5245223b3639974ee80e7d14922bd97fc4de73ac84ce57d3b3d62e79fe74c501","downloaded_from":"2026-09-10T02:26:28.336Z","last_downloaded_at":"2026-09-10T02:26:28.336Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482270","source_sha256":"f9b115bc96cb11ba8b939b90bc2c65a2e08aea1bf0003365bd14417ad61bab2b"}},{"citation":"974-10-05-4","para":"05-4","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_2BAF4679-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">A <a href=\"/glossary/r/#real-estate-investment-trust\" class=\"term\" title=\"Real estate investment trusts generally are formed as trusts, associations, or corporations. They employ equity capital, coupled with substantial amounts of debt financing, in making real estate loans and investments. Real estate investment trusts must distribute substantially all of their taxable income to their shareholders annually in order to retain their favorable tax status (that is, dividends paid are treated as deductions in arriving at taxable income).\"><span>real estate investment trust</span></a>, if it so elects, will not be required to pay federal corporate income taxes (other than that on tax preference items) if, among other things, at least 90 percent of its taxable income, as defined, is distributed to its shareholders. This Subtopic, however, is not restricted to those real estate investment trusts that have elected such tax treatment. </span></span> </div> </div>","snippet":"A real estate investment trust, if it so elects, will not be required to pay federal corporate income taxes (other than that on tax preference items) if, among other things, at least 90 percent of its taxable income, as …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:27ed85bf7e053be21987413000562baea84ef0e4afb99ed101797069b7729607","downloaded_from":"2026-09-10T02:26:28.336Z","last_downloaded_at":"2026-09-10T02:26:28.336Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482270","source_sha256":"f9b115bc96cb11ba8b939b90bc2c65a2e08aea1bf0003365bd14417ad61bab2b"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:279b5fb5946b356e6e9ad376fcb82e002a17728c2dab29f6c4ac2c57880d54e7","downloaded_from":"2026-09-10T02:26:28.336Z","last_downloaded_at":"2026-09-10T02:26:28.336Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482270","source_sha256":"f9b115bc96cb11ba8b939b90bc2c65a2e08aea1bf0003365bd14417ad61bab2b"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2020dcb114656b7cbd419fd3510e94bab05dfb7102265f28accb520aaeb46f8d","downloaded_from":"2026-09-10T02:26:28.336Z","last_downloaded_at":"2026-09-10T02:26:28.336Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482270","source_sha256":"f9b115bc96cb11ba8b939b90bc2c65a2e08aea1bf0003365bd14417ad61bab2b"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2020dcb114656b7cbd419fd3510e94bab05dfb7102265f28accb520aaeb46f8d","downloaded_from":"2026-09-10T02:26:28.336Z","last_downloaded_at":"2026-09-10T02:26:28.336Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482270","source_sha256":"f9b115bc96cb11ba8b939b90bc2c65a2e08aea1bf0003365bd14417ad61bab2b"}}