61 Pa. Code § 91.201 - Real estate company
(a) A
corporation or association is a real estate company when it is primarily
engaged in the business of holding, selling or leasing realty 90% or more of
the ownership interest in which is held by 35 or fewer persons and which does
one of the following:
(1) Derives 60% or more
of its annual gross receipts from the ownership or disposition of
realty.
(2) Holds realty, the value
which comprises 90% or more of its entire tangible asset holdings, exclusive of
tangible assets which are freely transferable and actively traded on an
established market.
(b)
For the purpose of subsection (a), the following apply:
(1) The current monetary worth of assets is
used in determining whether an enterprise meets the asset test.
(2) Interests in an enterprise owned by
another corporation, or by a partnership, limited partnership or other
association are not considered owned by the individuals who comprise the
stockholders of the other corporation or partners or members of the
partnership, limited partnership or other association.
(3) Interests in an enterprise owned by a
trust are considered owned proportionately by the remaindermen.
(4) Interests in an enterprise owned by a
decedent's estate are considered owned by the specific devisee, or by the
residuary devisee where there is no specific devise.
(5) The gross receipts test shall be applied
with respect to the last completed fiscal year of the enterprise immediately
preceding the valuation date.
(6)
When, as part of its original capitalization, a newly formed corporation or
association has contracted to sell a preorganization subscription, the
subscribers to the preorganizational subscription shall, upon organization of
the corporation or association, be considered the owners of the interests to
which they subscribed.
Notes
The provisions of this § 91.201 issued under section 1107-C of the Tax Reform Code of 1971 (72 P. S. § 8107-C).
This section cited in 61 Pa. Code § 91.211 (relating to family farm corporation).
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