# ASC 974-10: Real Estate—Real Estate Investment Trusts — Overall Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/974/10/) 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. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-10T02:26:25.491Z to 2026-09-10T02:26:47.600Z Record version: sha256:c3ca38ac9c2234e41c2e7004523deb8c4a7168203d033bad2c330eb868904863 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 974-10: Real Estate—Real Estate Investment Trusts — Overall ### Machine-generated study aids ```json { "summary": "ASC 974-10 is the Overall subtopic for Real Estate—Real Estate Investment Trusts, describing the structure and scope of the REIT Topic and pointing to its subtopics (equity method/joint ventures, other expenses, consolidation, interest, and leases). It provides only incremental industry-specific guidance: REITs must also follow all otherwise applicable GAAP. It applies to all REITs, whether or not they have elected the federal tax treatment that avoids corporate income tax by distributing at least 90 percent of taxable income to shareholders.", "key_points": [ "The Codification splits real estate guidance across several Topics (General, Common Interest Realty Associations, REITs, Time-Sharing, Retail Land), with sale-leaseback sales of real estate addressed in Subtopic 842-40 (974-10-05-1).", "The REIT Topic contains Overall, Investments—Equity Method and Joint Ventures, Other Expenses, Consolidation, Interest, and Leases Subtopics (974-10-05-2).", "A REIT that so elects is not required to pay federal corporate income taxes (other than on tax preference items) if, among other things, at least 90 percent of its taxable income as defined is distributed to shareholders (974-10-05-4).", "The Topic is not limited to REITs that have made that tax election (974-10-05-4).", "Guidance in this Topic is incremental only; entities within its scope must also comply with all applicable guidance outside the Topic (974-10-15-1).", "The Topic applies to all REITs; non-REIT entities that make loans on or invest in real estate may find the conclusions appropriate, but their accounting practices are outside the scope (974-10-15-2).", "Effective for annual reporting periods beginning with the transition date of June 30, 2027 (see 105-10-65-7), an entity shall disclose the tax status of distributions per unit—for example, ordinary income, capital gain, and return of capital (974-10-50-1)." ], "categories": [ "Industry-specific", "Disclosure", "Income taxes", "Transition and effective dates" ], "audience_level": "introductory", "student_note": "The common misunderstanding is that ASC 974 is a self-contained accounting model for REITs; in fact it is only incremental guidance layered on top of ordinary GAAP, and it applies even to entities that have not elected REIT tax status. Remember the annual disclosure of the tax status of distributions per unit (ordinary income, capital gain, return of capital).", "related_topics": [ "970", "972", "978", "976", "842-40", "740" ], "key_concepts": [ "real estate investment trust", "90 percent distribution requirement", "incremental industry guidance", "scope", "tax status of distributions", "return of capital", "distributions per unit" ] } ``` Source downloaded (UTC): 2026-09-10T02:26:25.491Z to 2026-09-10T02:26:25.491Z Record version: sha256:9aefc0a47517ae935c0baf7e7e87d1abd3de8c68648993a25c7fd82d6d7ed1fa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 974-10-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/974/10/#00-status) SEC content: no ##### [974-10-00-1](https://asc.understandingaccounting.org/asc/974/10/#974-10-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:26:25.491Z to 2026-09-10T02:26:25.491Z Record version: sha256:ae16d00b7c4e44dbc2d214c1c96ef93ed521d5221bed618dacfd46984ea408fa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
974-10-05-1AmendedAccounting Standards Update No. 2016-0202/25/2016
974-10-05-1AmendedAccounting Standards Update No. 2014-0905/28/2014
974-10-05-2AmendedAccounting Standards Update No. 2014-0905/28/2014
974-10-50-1AddedAccounting Standards Update No. 2023-0610/09/2023
Source downloaded (UTC): 2026-09-10T02:26:28.336Z to 2026-09-10T02:26:28.336Z Record version: sha256:2020dcb114656b7cbd419fd3510e94bab05dfb7102265f28accb520aaeb46f8d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 974-10-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/974/10/#05-overview-and-background) SEC content: no ##### [974-10-05-1](https://asc.understandingaccounting.org/asc/974/10/#974-10-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:26:28.336Z to 2026-09-10T02:26:28.336Z Record version: sha256:47e61e2d0922fb3d501e481d5a75b5a17fcd9d4455665732842c0e55009cf72e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Codification contains several Topics for real estate due to the differing accounting treatment for various real estate subindustries. The Topics include: 1. a Real Estate—General 2. b Real Estate—Common Interest Realty Associations 3. c Real Estate—Real Estate Investment Trusts 4. d Real Estate—Time-Sharing Activities 5. e Real Estate—Retail Land. See also Subtopic 842-40 for accounting guidance for the sale of real estate that is part of a sale-leaseback transaction. ##### [974-10-05-2](https://asc.understandingaccounting.org/asc/974/10/#974-10-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:26:28.336Z to 2026-09-10T02:26:28.336Z Record version: sha256:3286dee1879ef64f0d4e8751386655fb5e961032f8103e94c29ef659aa345baf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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: 1. a Overall 2. b Investments—Equity Method and Joint Ventures 3. c [Subparagraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). 4. cc Other Expenses 5. d Consolidation 6. e Interest 7. f Leases. #### Tax Considerations ##### [974-10-05-3](https://asc.understandingaccounting.org/asc/974/10/#974-10-05-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:26:28.336Z to 2026-09-10T02:26:28.336Z Record version: sha256:5245223b3639974ee80e7d14922bd97fc4de73ac84ce57d3b3d62e79fe74c501 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [974-10-05-4](https://asc.understandingaccounting.org/asc/974/10/#974-10-05-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:26:28.336Z to 2026-09-10T02:26:28.336Z Record version: sha256:27ed85bf7e053be21987413000562baea84ef0e4afb99ed101797069b7729607 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A [real estate investment trust](https://asc.understandingaccounting.org/glossary/r/#real-estate-investment-trust "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)."), 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. Source downloaded (UTC): 2026-09-10T02:26:31.403Z to 2026-09-10T02:26:31.403Z Record version: sha256:cba325a0558b9eaa3fdaab911719168f39b552cebf93d0ddd954b9d061ab0b6e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 974-10-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/974/10/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [974-10-15-1](https://asc.understandingaccounting.org/asc/974/10/#974-10-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:26:31.403Z to 2026-09-10T02:26:31.403Z Record version: sha256:01ee7a130933a4aadf0b06bea0de97126151870b14e2f8e0c9b04dd27b181513 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Subtopics within the Real Estate—Real Estate Investment Trusts Topic only provide incremental industry-specific guidance for the entities defined in this Scope Section, or as further defined in the Scope Sections of the individual Subtopics. Entities within the scope of this Topic shall also comply with the applicable guidance not included in this Topic. #### Entities ##### [974-10-15-2](https://asc.understandingaccounting.org/asc/974/10/#974-10-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:26:31.403Z to 2026-09-10T02:26:31.403Z Record version: sha256:b467d9c82be6877a70119bcc4c4ec843bf5f38658cf713c81b5755968ad23a83 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Topic applies to all [real estate investment trusts](https://asc.understandingaccounting.org/glossary/r/#real-estate-investment-trust "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)."). The accounting issues discussed in this Topic may also be encountered by other entities which are not real estate investment trusts but which are engaged in the business of making loans on or investing in real estate. The conclusions in this Topic may, therefore, also be appropriate for those entities. However, the accounting practices of entities that are not real estate investment trusts are beyond the scope of this Topic. Source downloaded (UTC): 2026-09-10T02:26:36.955Z to 2026-09-10T02:26:36.955Z Record version: sha256:955c88bbd0d10b9db7eadbe95da5629b2f6aa66994c7a37e83f6ec99e49896ce Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 974-10-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/974/10/#50-disclosure) SEC content: no ##### [974-10-50-1](https://asc.understandingaccounting.org/asc/974/10/#974-10-50-1) Pending content: yes Source downloaded (UTC): 2026-09-10T02:26:36.955Z to 2026-09-10T02:26:36.955Z Record version: sha256:1f177a1ff6521a2d9b9a73e7ce3ab1bdc3dd902626285248e9f23094002be902 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) June 30, 2027; (N) June 30, 2027Transition guidance: [105-10-65-7](https://asc.understandingaccounting.org/asc/105/10/#105-10-65-7) For annual reporting periods, an entity shall disclose the tax status of distributions per unit (for example, ordinary income, capital gain, and return of capital). Source downloaded (UTC): 2026-09-10T02:26:39.818Z to 2026-09-10T02:26:39.818Z Record version: sha256:b6ea06062632ad470231898fe65928ab982d0aaa36ae281b4542aa4377c51621 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 974-10-S00: SEC 00 Status [Read section](https://asc.understandingaccounting.org/asc/974/10/#sec-00-status) SEC content: yes ##### [974-10-S00-1](https://asc.understandingaccounting.org/asc/974/10/#974-10-S00-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:26:39.818Z to 2026-09-10T02:26:39.818Z Record version: sha256:22f7af25d2a4d4b57bf3167bb9f208364299db041c3f328c993cb32d3a46a757 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
974-10-S99-1AmendedAccounting Standards Update No. 2019-0707/26/2019
Source downloaded (UTC): 2026-09-10T02:26:41.641Z to 2026-09-10T02:26:41.641Z Record version: sha256:38d60729c675db460b7627450ad1dd4b6e7bd468cb3c79e916451f3ee4bddfd4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 974-10-S45: SEC 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/974/10/#sec-45-other-presentation-matters) SEC content: yes #### Income Statement Presentation ##### [974-10-S45-1](https://asc.understandingaccounting.org/asc/974/10/#974-10-S45-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:26:41.641Z to 2026-09-10T02:26:41.641Z Record version: sha256:ce8ffae8564200ff029bc2bb5535c0508db0637b522ef5c853d9e7a8263b9208 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [974-10-S99-1](https://asc.understandingaccounting.org/asc/974/10/#974-10-S99-1), Regulation S-X Rule 3-15(a)(1), for income statement presentation requirements for real estate investment trusts. #### Balance Sheet Presentation ##### [974-10-S45-2](https://asc.understandingaccounting.org/asc/974/10/#974-10-S45-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:26:41.641Z to 2026-09-10T02:26:41.641Z Record version: sha256:5c69ce853676f5a13c5cb039988a2acfa3c5f6a15c54c6f093e2dc9c2dd9820b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [974-10-S99-1](https://asc.understandingaccounting.org/asc/974/10/#974-10-S99-1), Regulation S-X Rule 3-15(a)(2), for balance sheet requirements for real estate investment trusts. Source downloaded (UTC): 2026-09-10T02:26:45.093Z to 2026-09-10T02:26:45.093Z Record version: sha256:d86783993c97f4379adf91b5d6748d30d21fd71f6fece4411f7afddec589f4a5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 974-10-S50: SEC 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/974/10/#sec-50-disclosure) SEC content: yes #### Disclosures ##### [974-10-S50-1](https://asc.understandingaccounting.org/asc/974/10/#974-10-S50-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:26:45.093Z to 2026-09-10T02:26:45.093Z Record version: sha256:1f6d3784c4767608cdb9c65db84e5b535c9ccf082b571c3a39be50f3823937e9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [974-10-S99-1](https://asc.understandingaccounting.org/asc/974/10/#974-10-S99-1), Regulation S-X Rule 3-15, for disclosure requirements for real estate investment trusts. Source downloaded (UTC): 2026-09-10T02:26:47.600Z to 2026-09-10T02:26:47.600Z Record version: sha256:675d3c6d9b08db81b2156ae34c6359f32687c69942d2ed5c0e530ca13b77d815 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 974-10-S99: SEC 99 SEC Materials [Read section](https://asc.understandingaccounting.org/asc/974/10/#sec-99-sec-materials) SEC content: yes #### SEC Rules, Regulations, and Interpretations ##### [974-10-S99-1](https://asc.understandingaccounting.org/asc/974/10/#974-10-S99-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:26:47.600Z to 2026-09-10T02:26:47.600Z Record version: sha256:28728a8bc8b87435254b7f71aee9939bb00519e922e0316abd0f22f2b3d6dbdd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of Regulation S-X Rule 3-15, Special Provisions as to Real Estate Investment Trusts (17 CFR 210.3-15). - (a)-(b) \[Reserved\] - (c) The tax status of distributions per unit shall be stated (e. g., ordinary income, capital gain, return of capital). - \[45 FR 63687, Sept. 25, 1980, as amended at 50 FR 49532, Dec. 3, 1985, 83 FR 50199, Oct. 4, 2018\]