Pennsylvania Code & Bulletin

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The Pennsylvania Code website reflects the Pennsylvania Code changes effective through 53 Pa.B. 7346 (November 25, 2023).

61 Pa. Code § 91.201. Real estate company.

§ 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.


   The provisions of this §  91.201 issued under section 1107-C of the Tax Reform Code of 1971 (72 P. S. §  8107-C).


   The provisions of this §  91.201 adopted September 9, 1988, effective September 10, 1988, 18 Pa.B. 4096.

Cross References

   This section cited in 61 Pa. Code §  91.211 (relating to family farm corporation).

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