Every indexed document

and payment obligations. 32 That provision treats an eligible single-owner DRE as a

SMLLCs) as corporations for employment tax purposes. 27 Thus

the IRS issued proposed regulations governing the treatment of DREs for

and holds mainly real estate. 19 REITs generally receive conduit income

a non-electing SMLLC is generally ignored for federal tax

the check-the-box regulations treat its activities “in the same

” it may elect on Form 8832 to be taxed as a corporation. 13 If an SMLLC does not elect to

is automatically treated as “disregarded as an entity separate from its

such as a domestic limited liability company (LLC) with

” which analyzed four characteristics of the

the federal tax classification of an unincorporated business entity was determined

and will survey the exceptions and modifications that apply given such

each practitioner needs to determine whether his or her particular grantor

at least one court has not interpreted the rules in that manner. 6 Given the varying

a trust that is deemed to be entirely owned by a single individual or

there are conflicting views regarding the treatment of a grantor

in calculating his or her taxable income

which are found in Subpart E of Subchapter J of the Code. 2

Congress did not issue statutory guidance until

but there are also other miscellaneous DREs that arise primarily