real estate investment trust taxable income
(2) Real estate investment trust taxable income For purposes of this part, the term “real estate investment trust taxable income” means the taxable income of the real estate investment trust, adjusted as follows: (A) The deductions for corporations provided in part VIII (except section 248) of subchapter B (section 241 and following, relating to the deduction for dividends received, etc.) shall not be allowed. (B) The deduction for dividends paid (as defined in section 561 ) shall be allowed, but shall be computed without regard to that portion of such deduction which is attributable to the amount excluded under subparagraph (D). (C) The taxable income shall be computed without regard to section 443(b) (relating to computation of tax on change of annual accounting period). (D) There shall be excluded an amount equal to the net income from foreclosure property. (E) There shall be deducted an amount equal to the tax imposed by paragraphs (5) and (7) of this subsection, section 856(c)(7)(C), and section 856(g)(5) for the taxable year. (F) There shall be excluded an amount equal to any net income derived from prohibited transactions.