impermissible tenant service income
(7) Impermissible tenant service income For purposes of paragraph (2)(C)— (A) In general The term “impermissible tenant service income” means, with respect to any real or personal property, any amount received or accrued directly or indirectly by the real estate investment trust for— (i) services furnished or rendered by the trust to the tenants of such property, or (ii) managing or operating such property. (B) Disqualification of all amounts where more than de minimis amount If the amount described in subparagraph (A) with respect to a property for any taxable year exceeds 1 percent of all amounts received or accrued during such taxable year directly or indirectly by the real estate investment trust with respect to such property, the impermissible tenant service income of the trust with respect to the property shall include all such amounts. (C) Exceptions For purposes of subparagraph (A)— (i) services furnished or rendered, or management or operation provided, through an independent contractor from whom the trust itself does not derive or receive any income or through a taxable REIT subsidiary of such trust shall not be treated as furnished, rendered, or provided by the trust, and (ii) there shall not be taken into account any amount which would be excluded from unrelated business taxable income under section 512(b)(3) if received by an organization described in section 511(a)(2). (D) Amount attributable to impermissible services For purposes of subparagraph (A), the amount treated as received for any service (or management or operation) shall not be less than 150 percent of the direct cost of the trust in furnishing or rendering the service (or providing the management or operation). (E) Coordination with limitations For purposes of paragraphs (2) and (3) of subsection (c), amounts described in subparagraph (A) shall be included in the gross income of the corporation, trust, or association.
26 USC § 856(d)(7)
None identified, default scope is assumed to be the parent (part II) of this section.