USRPI gain
(4) Partnership allocations (A) In general For the purposes of this subsection, in the case of an applicable investor who is a nonresident alien individual or a foreign corporation and is a partner in a partnership that is a qualified shareholder, if such partner’s proportionate share of USRPI gain for the taxable year exceeds such partner’s distributive share of USRPI gain for the taxable year, then (i) such partner’s distributive share of the amount of gain taken into account under subsection (a)(1) by the partner for the taxable year (determined without regard to this paragraph) shall be increased by the amount of such excess, and (ii) such partner’s distributive share of items of income or gain for the taxable year that are not treated as gain taken into account under subsection (a)(1) (determined without regard to this paragraph) shall be decreased (but not below zero) by the amount of such excess. (B) USRPI gain For the purposes of this paragraph, the term “USRPI gain” means the excess (if any) of— (i) the sum of— (I) any gain recognized from the disposition of a United States real property interest, and (II) any distribution by a real estate investment trust that is treated as gain recognized from the sale or exchange of a United States real property interest, over (ii) any loss recognized from the disposition of a United States real property interest. (C) Proportionate share of USRPI gain For purposes of this paragraph, an applicable investor’s proportionate share of USRPI gain shall be determined on the basis of such investor’s share of partnership items of income or gain (excluding gain allocated under section 704(c) ), whichever results in the largest proportionate share. If the investor’s share of partnership items of income or gain (excluding gain allocated under section 704(c)) may vary during the period such investor is a partner in the partnership, such share shall be the highest share such investor may receive.