qualified dividend income

(2) Section (1)(h)(11) (A) In general In any case in which— (i) a dividend is received from a real estate investment trust (other than a capital gain dividend), and (ii) such trust meets the requirements of section 856(a) for the taxable year during which it paid such dividend, then, in computing qualified dividend income, there shall be taken into account only that portion of such dividend designated by the real estate investment trust. (B) Limitation The aggregate amount which may be designated as qualified dividend income under subparagraph (A) shall not exceed the sum of— (i) the qualified dividend income of the trust for the taxable year, (ii) the excess of— (I) the sum of the real estate investment trust taxable income computed under section 857(b)(2) for the preceding taxable year and the income subject to tax by reason of the application of the regulations under section 337(d) for such preceding taxable year, over (II) the sum of the taxes imposed on the trust for such preceding taxable year under section 857(b)(1) and by reason of the application of such regulations, and (iii) the amount of any earnings and profits which were distributed by the trust for such taxable year and accumulated in a taxable year with respect to which this part did not apply. (C) Notice to shareholders The amount of any distribution by a real estate investment trust which may be taken into account as qualified dividend income shall not exceed the amount so designated by the trust in a written notice to its shareholders mailed not later than 60 days after the close of its taxable year. (D) Qualified dividend income For purposes of this paragraph, the term “qualified dividend income” has the meaning given such term by section 1(h)(11)(B).


26 USC § 857(c)(2)

Scoping language

For purposes of this paragraph
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