N.Y. Comp. Codes R. & Regs. Tit. 20 §§ 1-1.7

Current through Register Vol. 46, No. 36, September 4, 2024

Section 1-1.7 - Regularly traded on an established securities market

The term "regularly traded on an established securities market," for purposes of determining whether a REIT is a captive REIT or whether a RIC is a captive RIC, means that:

(a)

(1) more than 50% of the REIT's or RIC's voting stock is listed during the taxable year on one or more established securities markets;

(2) trades are made on shares of the REIT's or RIC's voting stock on such market or markets, other than trades made in de minimis quantities, on at least 60 days during the taxable year (or one-sixth of the number of days in a short taxable year); and

(3) the number of shares of the REIT's or RIC's voting stock that are traded on such market or markets during the taxable year comprise at least 10% of the average number of such shares that are outstanding during such taxable year (or, in the case of a short taxable year, a percentage that equals at least 10% of the average number of shares outstanding during the short taxable year).

(b) For purposes of subdivision (a) of this section, the shares of the REIT's or RIC's voting stock that are traded on an established securities market located in the United States will be deemed to meet the requirements of paragraphs (2) and (3) of subdivision (a) of this section, if such shares are regularly quoted by dealers making a market in such stock. A dealer "makes a market" in stock only if the dealer in the ordinary course of a trade or business regularly and actively offers to purchase and sell such stock and, in fact, does purchase such stock from, and sell such stock to, customers that are not related corporations as defined in section 6-2.6 of this Subchapter, with respect to the dealer.

(c) The term "regularly traded on an established securities market" does not include trades made between or among related corporations, as defined in section 6-2.6 of this Subchapter.

(d) For purposes of this section, the term "established securities market" means a securities market that meets the requirements of 26 CFR 1.883-2(b).

N.Y. Comp. Codes R. & Regs. Tit. 20 §§ 1-1.7

Adopted New York State Register December 27, 2023/Volume XLV, Issue 52, eff. 12/27/2023