Reversing a decision of the trial court, the Appellate Division, Third Department, has held that fiber optic cable installations are not taxable real property because they do not "distribute" light, heat, or power within the meaning of the statute. The letter ruling included a taxpayer's. amounts received by Taxpayer for the use of the System Components and the related Property Interests qualify as “rents from real property” under § 856(d)(1). The provision by Taxpayer of the Tenant Services does not give rise to impermissible tenant service income, and will not cause any portion. In two recent private letter rulings (PLR 202132002 and PLR 202133003), the IRS has ruled that payments received by a real estate investment trust (REIT) for the right to use capacity on the REIT's fiber optic cables qualify as "rents from real property" for purposes of IRC Section 856 (c) (2) and. Taxpayer is a corporation and represents that it elected to be taxed as a real estate investment trust (“REIT”) under sections 856 through 859 of the Code beginning with its taxable year that ended on Date. Taxpayer leases systems composed of permanently affixed coaxial and fiber optic cable, and. Paragraph (b) of this section defines real property, which includes land as defined under paragraph (c) of this section and improvements to land as defined under paragraph (d) of this section. Improvements to land include inherently permanent structures as defined under paragraph (d) (2) of this. issues afecting the deployment of broadband communications infrastructure. These eforts resulted in the adoption of a Task Force resolution in November 2013 that encouraged states “.
