Amendments
2018—Subsec. (b)(6)(J). Pub. L. 115–141 substituted “section 856(c)(10)” for “section 856(c)(8)”.
2017—Subsec. (b)(3)(A), (B). Pub. L. 115–97, § 13001(b)(2)(K)(i), redesignated subpars. (B) and (C) as (A) and (B), respectively, and struck out former subpar. (A) which related to alternative tax in case of capital gains.
Subsec. (b)(3)(C). Pub. L. 115–97, § 13001(b)(2)(K)(i), redesignated subpar. (D) as (C). Former subpar. (C) redesignated (B).
Subsec. (b)(3)(C)(i), (ii), (iv). Pub. L. 115–97, § 13001(b)(2)(K)(ii), substituted “paragraph (1)” for “subparagraph (A)(ii)” in cl. (i) and “the tax imposed by paragraph (1) on undistributed capital gain” for “the tax imposed by subparagraph (A)(ii)” in cls. (ii) and (iv).
Subsec. (b)(3)(D). Pub. L. 115–97, § 13001(b)(2)(K)(i), redesignated subpar. (E) as (D). Former subpar. (D) redesignated (C).
Subsec. (b)(3)(E). Pub. L. 115–97, § 13001(b)(2)(K)(i), (iii), redesignated subpar. (F) as (E) and substituted “subparagraph (A) or (C)” for “subparagraph (B) or (D)”. Former subpar. (E) redesignated (D).
Subsec. (b)(3)(F). Pub. L. 115–97, § 13001(b)(2)(K)(iv), added subpar. (F). Former subpar. (F) redesignated (E).
2015—Subsec. (b)(3)(F). Pub. L. 114–113, § 322(a)(2)(B), inserted “or subparagraph (A)(ii) or (C) of section 897(k)(2)” after “897(h)(1)”.
Subsec. (b)(6)(C). Pub. L. 114–113, § 313(b)(1), in introductory provisions, struck out “and which is described in section 1221(a)(1)” after “(as defined in section 856(c)(5)(B))”.
Subsec. (b)(6)(C)(iii)(IV), (V). Pub. L. 114–113, § 313(a)(1), added subcls. (IV) and (V).
Subsec. (b)(6)(C)(v). Pub. L. 114–113, § 321(a)(1), inserted “or a taxable REIT subsidiary” before period at end.
Subsec. (b)(6)(D). Pub. L. 114–113, § 313(b)(1), in introductory provisions, struck out “and which is described in section 1221(a)(1)” after “(as defined in section 856(c)(5)(B))”.
Subsec. (b)(6)(D)(iv)(IV), (V). Pub. L. 114–113, § 313(a)(3), added subcls. (IV) and (V).
Subsec. (b)(6)(D)(v). Pub. L. 114–113, § 321(a)(2), struck out “, in the case of a sale on or before the termination date,” before “a taxable REIT subsidiary”.
Subsec. (b)(6)(F). Pub. L. 114–113, § 313(b)(2), amended subpar. (F) generally. Prior to amendment, text read as follows: “In determining whether or not any sale constitutes a ‘prohibited transaction’ for purposes of subparagraph (A), the fact that such sale does not meet the requirements of subparagraph (C) or (D) shall not be taken into account; and such determination, in the case of a sale not meeting such requirements, shall be made as if subparagraphs (C), (D), and (E) had not been enacted.”
Subsec. (b)(6)(G) to (J). Pub. L. 114–113, § 313(a)(2), added subpars. (G) and (H) and redesignated former subpars. (G) and (H) as (I) and (J), respectively.
Subsec. (b)(7)(A). Pub. L. 114–113, § 321(b)(1), substituted “excess interest, and redetermined TRS service income” for “and excess interest”.
Subsec. (b)(7)(B)(i), (C). Pub. L. 114–113, § 321(b)(3), substituted “subparagraph (F)” for “subparagraph (E)”.
Subsec. (b)(7)(E) to (G). Pub. L. 114–113, § 321(b)(2), added subpar. (E) and redesignated former subpars. (E) and (F) as (F) and (G), respectively.
Subsec. (d)(1). Pub. L. 114–113, § 320(a)(1), amended par. (1) generally. Prior to amendment, text read as follows: “The earnings and profits of a real estate investment trust for any taxable year (but not its accumulated earnings) shall not be reduced by any amount which is not allowable in computing its taxable income for such taxable year. For purposes of this subsection, the term ‘real estate investment trust’ includes a domestic corporation, trust, or association which is a real estate investment trust determined without regard to the requirements of subsection (a).”
Subsec. (d)(4), (5). Pub. L. 114–113, § 320(a)(2), added pars. (4) and (5).
Subsecs. (g), (h). Pub. L. 114–113, § 316(a), added subsec. (g) and redesignated former subsec. (g) as (h).
2008—Subsec. (b)(3)(A)(ii). Pub. L. 110–246, § 15311(c), substituted “rates” for “rate”.
Subsec. (b)(4)(B)(i). Pub. L. 110–289, § 3033(a), amended cl. (i) generally. Prior to amendment, cl. (i) read as follows: “gain from the sale or other disposition of foreclosure property described in section 1221(a)(1) and the gross income for the taxable year derived from foreclosure property (as defined in section 856(e)), but only to the extent such gross income is not described in subparagraph (A), (B), (C), (D), (E), or (G) of section 856(c)(3), over”.
Subsec. (b)(6)(B)(i). Pub. L. 110–289, § 3033(b), amended cl. (i) generally. Prior to amendment, cl. (i) read as follows: “the term ‘net income derived from prohibited transactions’ means the excess of the gain from prohibited transactions over the deductions allowed by this chapter which are directly connected with prohibited transactions;”.
Subsec. (b)(6)(C). Pub. L. 110–289, § 3051(a)(3), substituted “real estate asset (as defined in section 856(c)(5)(B)) and which is described in section 1221(a)(1) if” for “real estate asset as defined in section 856(c)(5)(B) if” in introductory provisions.
Subsec. (b)(6)(C)(i). Pub. L. 110–289, § 3051(a)(1), substituted “2 years” for “4 years”.
Subsec. (b)(6)(C)(ii). Pub. L. 110–289, § 3051(a)(2), substituted “2-year period” for “4-year period”.
Subsec. (b)(6)(C)(iii)(III). Pub. L. 110–289, § 3052(1), added subcl. (III).
Subsec. (b)(6)(C)(iv). Pub. L. 110–289, § 3051(a)(1), substituted “2 years” for “4 years”.
Subsec. (b)(6)(D). Pub. L. 110–289, § 3051(a)(3), substituted “real estate asset (as defined in section 856(c)(5)(B)) and which is described in section 1221(a)(1) if” for “real estate asset (as defined in section 856(c)(5)(B)) if” in introductory provisions.
Subsec. (b)(6)(D)(i). Pub. L. 110–289, § 3051(a)(1), substituted “2 years” for “4 years”.
Subsec. (b)(6)(D)(ii), (iii). Pub. L. 110–289, § 3051(a)(2), substituted “2-year period” for “4-year period” in introductory provisions.
Subsec. (b)(6)(D)(iv)(III). Pub. L. 110–289, § 3052(2), added subcl. (III).
Subsec. (b)(6)(D)(v). Pub. L. 110–246, § 15315(b), inserted “, or, in the case of a sale on or before the termination date, a taxable REIT subsidiary” after “any income”.
Subsec. (b)(6)(G). Pub. L. 110–289, § 3051(b), redesignated subpar. (H) as (G), inserted at end “For purposes of the preceding sentence, the reference to subparagraph (D) shall be a reference to such subparagraph as in effect on the day before the enactment of the Housing Assistance Tax Act of 2008, as modified by subparagraph (G) as so in effect.”, and struck out former subpar. (G). Prior to amendment, text of subpar. (G) read as follows:
“(i) In general.—In the case of the sale of a real estate asset (as defined in section 856(c)(5)(B)) to a qualified organization (as defined in section 170(h)(3)) exclusively for conservation purposes (within the meaning of section 170(h)(1)(C)), subparagraph (D) shall be applied—
“(I) by substituting ‘2 years’ for ‘4 years’ in clause (i), and
“(II) by substituting ‘2-year period’ for ‘4-year period’ in clauses (ii) and (iii).
“(ii) Termination.—This subparagraph shall not apply to sales after the termination date.”
Pub. L. 110–246, § 15315(a), added subpar. (G).
Subsec. (b)(6)(H), (I). Pub. L. 110–289, § 3051(b)(1), redesignated subpar. (I) as (H). Former subpar. (H) redesignated (G).
Pub. L. 110–246, § 15315(c), (d), added subpars. (H) and (I).
2007—Subsec. (b)(8)(B). Pub. L. 110–172 amended heading and text generally. Prior to amendment, text read as follows: “For purposes of this paragraph, the rules of paragraphs (3) and (4) of section 246(c) shall apply in determining the period for which the taxpayer has held any share of stock or beneficial interest; except that ‘6 months’ shall be substituted for the number of days specified in subparagraph (B) of section 246(c)(3).”
2005—Subsec. (b)(2)(E). Pub. L. 109–135, § 403(d)(3), substituted “section 856(c)(7)(C), and section 856(g)(5)” for “section 856(c)(7)(B)(iii), and section 856(g)(1).”
Subsec. (b)(6)(E). Pub. L. 109–135, § 412(ii)(1), substituted “subparagraphs (C) and (D)” for “subparagraph (C)” in introductory provisions.
Subsec. (b)(6)(F). Pub. L. 109–135, § 412(ii)(2), substituted “subparagraph (C) or (D)” for “subparagraph (C) of this paragraph” and “subparagraphs (C), (D), and (E)” for “subparagraphs (C) and (D)”.
2004—Subsec. (b)(2)(E). Pub. L. 108–357, § 243(f)(4), substituted “(7) of this subsection, section 856(c)(7)(B)(iii), and section 856(g)(1).” for “(7)”.
Subsec. (b)(3)(F). Pub. L. 108–357, § 418(b), added subpar. (F).
Subsec. (b)(5)(A)(i). Pub. L. 108–357, § 243(e), substituted “95 percent” for “90 percent”.
Subsec. (b)(6)(D) to (F). Pub. L. 108–357, § 321(a), added subpar. (D) and redesignated former subpars. (D) and (E) as (E) and (F), respectively.
Subsec. (b)(7)(B)(ii) to (vii). Pub. L. 108–357, § 243(c), redesignated cls. (iii) to (vii) as (ii) to (vi), respectively, and struck out former cl. (ii), which related to exception for amounts received by a REIT for services furnished or rendered by a taxable REIT subsidiary that were described in section 856(d)(1)(B) of this title, or from a taxable REIT subsidiary that were described in par. (7)(C)(ii) of such section.
Subsec. (c)(2). Pub. L. 108–311, § 402(a)(5)(E), reenacted heading without change and amended text generally. Prior to amendment, text related to rules applicable to dividends received from real estate investment trusts for purposes of section 1(h)(11) of this title.
2003—Subsec. (c). Pub. L. 108–27 reenacted subsec. heading without change and amended text generally. Prior to amendment, text read as follows: “For purposes of section 243 (relating to deductions for dividends received by corporations), a dividend received from a real estate investment trust which meets the requirements of this part shall not be considered as a dividend.”
2002—Subsec. (b)(7)(B)(i). Pub. L. 107–147, § 417(13), substituted “section 856(d)” for “subsection 856(d)”.
Pub. L. 107–147, § 413(a)(1), substituted “to the extent the amount of the rents” for “the amount of which”.
Subsec. (b)(7)(C). Pub. L. 107–147, § 413(a)(2), substituted “to the extent the amount” for “if the amount”.
2000—Subsec. (b)(7)(B)(ii). Pub. L. 106–554 amended heading and text of cl. (ii) generally. Prior to amendment, text read as follows: “Clause (i) shall not apply to amounts received directly or indirectly by a real estate investment trust for services described in paragraph (1)(B) or (7)(C)(i) of section 856(d).”
1999—Subsec. (a)(1)(A)(i), (ii). Pub. L. 106–170, § 556(a), substituted “90 percent” for “95 percent (90 percent for taxable years beginning before January 1, 1980)”.
Subsec. (b)(2)(E). Pub. L. 106–170, § 545(b), substituted “paragraphs (5) and (7)” for “paragraph (5)”.
Subsec. (b)(4)(B)(i). Pub. L. 106–170, § 532(c)(2)(L), substituted “section 1221(a)(1)” for “section 1221(1)”.
Subsec. (b)(5)(A)(i). Pub. L. 106–170, § 556(b), substituted “90 percent” for “95 percent (90 percent in the case of taxable years beginning before January 1, 1980)”.
Subsec. (b)(6)(B)(iii). Pub. L. 106–170, § 532(c)(2)(M), substituted “section 1221(a)(1)” for “section 1221(1)”.
Subsec. (b)(7) to (9). Pub. L. 106–170, § 545(a), added par. (7) and redesignated former pars. (7) and (8) as (8) and (9), respectively.
Subsec. (d)(3)(A). Pub. L. 106–170, § 566(a)(2), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “shall be treated for purposes of this subsection and subsection (a)(2)(B) as made from the earliest earnings and profits accumulated in any taxable year to which the provisions of this part did not apply rather than the most recently accumulated earnings and profits, and”.
Subsec. (d)(3)(B). Pub. L. 106–170, § 566(b), inserted “and section 858” before period at end.
1998—Subsec. (d)(3)(A). Pub. L. 105–206 substituted “earliest earnings and profits accumulated in any taxable year to which the provisions of this part did not apply” for “earliest accumulated earnings and profits (other than earnings and profits to which subsection (a)(2)(A) applies)”.
1997—Subsec. (a)(2), (3). Pub. L. 105–34, § 1251(a)(1), redesignated par. (3) as (2) and struck out former par. (2) which read as follows: “the real estate investment trust complies for such year with regulations prescribed by the Secretary for the purpose of ascertaining the actual ownership of the outstanding shares, or certificates of beneficial interest, of such trust, and”.
Subsec. (b)(3)(D), (E). Pub. L. 105–34, § 1254(a), added subpar. (D) and redesignated former subpar. (D) as (E).
Subsec. (b)(5). Pub. L. 105–34, § 1255(b)(2), substituted “section 856(c)(6)” for “section 856(c)(7)” in introductory provisions.
Subsec. (b)(6)(C). Pub. L. 105–34, § 1255(b)(3), substituted “section 856(c)(5)(B)” for “section 856(c)(6)(B)” in introductory provisions.
Subsec. (b)(6)(C)(iii). Pub. L. 105–34, § 1260, substituted “(other than sales of foreclosure property or sales to which section 1033 applies)” for “(other than foreclosure property)” in subcls. (I) and (II).
Subsec. (b)(7)(A)(i). Pub. L. 105–34, § 1254(b)(1), substituted “subparagraph (B) or (D)” for “subparagraph (B)”.
Subsec. (d)(3). Pub. L. 105–34, § 1256, added par. (3).
Subsec. (e)(2)(B) to (D). Pub. L. 105–34, § 1259, redesignated subpar. (C) as (B) and substituted a comma for period at end, added subpars. (C) and (D), and struck out former subpar. (B) which read as follows: “in the case of a real estate investment trust using the cash receipts and disbursements method of accounting, the amount (if any) by which—
“(i) the amounts includible in gross income with respect to instruments to which section 1274 (relating to certain debt instruments issued for property) applies, exceed
“(ii) the amount of money and the fair market value of other property received during the taxable year under such instruments; plus”.
Subsecs. (f), (g). Pub. L. 105–34, § 1251(a)(2), added subsec. (f) and redesignated former subsec. (f) as (g).
1990—Subsec. (b)(3)(C). Pub. L. 101–508 amended Pub. L. 100–647, § 1018(u)(28). See 1988 Amendment note below.
1988—Subsec. (a). Pub. L. 100–647, § 1006(s)(4), inserted at end “The Secretary may waive the requirements of paragraph (1) for any taxable year if the real estate investment trust establishes to the satisfaction of the Secretary that it was unable to meet such requirements by reason of distributions previously made to meet the requirements of section 4981.”
Subsec. (b)(3)(C). Pub. L. 100–647, § 1018(u)(28), as amended by Pub. L. 101–508, substituted “such net capital loss shall” for “such net capital loss such”.
Pub. L. 100–647, § 1006(s)(2), substituted “the taxable income of the real estate investment trust” for “real estate investment trust taxable income”.
Subsec. (b)(8). Pub. L. 100–647, § 1006(s)(5), substituted “in October, November, or December” for “in December” and “in such a month” for “in such month” in introductory text, “on December 31 of such calendar year” for “on such date”, in subpars. (A) and (B), and “during January” for “before February 1” in last sentence.
Subsec. (e)(2)(B)(i). Pub. L. 100–647, § 1006(r), substituted “with respect to instruments” for “as original issue discount on instruments”.
1986—Subsec. (a). Pub. L. 99–514, § 661(b), struck out “and” at end of par. (1), substituted “, and” for the period at end of par. (2), and added par. (3) and last sentence.
Subsec. (a)(1)(B). Pub. L. 99–514, § 664(a), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “the sum of—
“(i) the amount of any penalty imposed on the real estate investment trust by section 6697 which is paid by such trust during the taxable year; and
“(ii) the net loss derived from prohibited transactions,”.
Subsec. (b)(2)(F). Pub. L. 99–514, § 666(b)(2), struck out “and there shall be included an amount equal to any net loss derived from prohibited transactions” after “prohibited transactions”.
Subsec. (b)(3)(C). Pub. L. 99–514, § 668(b)(3), inserted at end “For purposes of this subparagraph, the amount of the net capital gain for any taxable year which is not a calendar year shall be determined without regard to any net capital loss attributable to transactions after December 31 of such year, and any such net capital loss such be treated as arising on the 1st day of the next taxable year. To the extent provided in regulations, the preceding sentence shall apply also for purposes of computing real estate investment trust taxable income.”
Pub. L. 99–514, § 665(a)(2), (b)(1), inserted “(or mailed to its shareholders or holders of beneficial interests with its annual report for the taxable year)”, struck out last sentence which read as follows: “For purposes of this subparagraph, the net capital gain shall be deemed not to exceed the real estate investment trust taxable income (determined without regard to the deduction for dividends paid (as defined in section 561) for the taxable year).”
Subsec. (b)(3)(D). Pub. L. 99–514, § 665(a)(1), added subpar. (D).
Subsec. (b)(6)(B)(ii). Pub. L. 99–514, § 666(b)(1), amended cl. (ii) generally. Prior to amendment, cl. (ii) read as follows: “the term ‘net loss derived from prohibited transactions’ means the excess of the deductions allowed by this chapter which are directly connected with prohibited transactions over the gain from prohibited transactions; and”.
Subsec. (b)(6)(C)(ii). Pub. L. 99–514, § 666(a)(2), substituted “30 percent” for “20 percent”.
Subsec. (b)(6)(C)(iii). Pub. L. 99–514, § 666(a)(1), amended cl. (iii) generally. Prior to amendment, cl. (iii) read as follows: “during the taxable year the trust does not make more than 5 sales of property (other than foreclosure property); and”.
Subsec. (b)(6)(C)(v). Pub. L. 99–514, § 666(a)(3), added cl. (v).
Subsec. (b)(8). Pub. L. 99–514, § 668(b)(1)(A), added par. (8).
Subsec. (c). Pub. L. 99–514, § 612(b)(7), which directed that “section 116 (relating to an exclusion for dividends received by individuals), and” be struck out, was executed by striking out “section 116 (relating to an exclusion for dividends received by individuals) and” before “section 243” as the probable intent of Congress.
Subsec. (d). Pub. L. 99–514, § 668(b)(2), amended subsec. (d) generally. Prior to amendment, subsec. (d) read as follows: “The earnings and profits of a real estate investment trust for any taxable year (but not its accumulated earnings and profits) shall not be reduced by any amount which is not allowable as a deduction in computing its taxable income for such taxable year. For purposes of this subsection, the term ‘real estate investment trust’ includes a domestic corporation, trust, or association which is a real estate investment trust determined without regard to the requirements of subsection (a).”
Subsecs. (e), (f). Pub. L. 99–514, § 664(b), added subsec. (e) and redesignated former subsec. (e) as (f).
1984—Subsec. (b)(3)(B). Pub. L. 98–369, § 1001(b)(13), (e), substituted “6 months” for “1 year”, applicable to property acquired after June 22, 1984, and before Jan. 1, 1988. See Effective Date of 1984 Amendment note below.
Subsec. (b)(7). Pub. L. 98–369, § 55(b), substituted provisions relating to loss on sale or exchange of stock held 6 months or less for provisions which related to loss on sale or exchange of stock held 31 days or less.
Pub. L. 98–369, § 1001(b)(13), (e), substituted “6 months” for “1 year”, applicable to property acquired after June 22, 1984, and before Jan. 1, 1988. See Effective Date of 1984 Amendment note below.
Subsec. (c). Pub. L. 98–369, § 16(a), repealed amendments made by Pub. L. 97–34, § 302(c). See 1981 Amendment note below.
1981—Subsec. (c). Pub. L. 97–34, § 302(c)(5), (d)(1), provided for general amendment of subsec. (c) so as to include provisions relating to treatment for section 128 of this title, adjustments to gross income and aggregate interest received, and notice to shareholders, applicable to taxable years beginning after Dec. 31, 1984. Section 16(a) of Pub. L. 98–369, repealed section 302(c) of Pub. L. 97–34, and provided that this title shall be applied and administered as if section 302(c), and the amendments made by section 302(c), had not been enacted.
1980—Subsec. (b)(4)(A). Pub. L. 96–222 substituted provisions computing the tax on the net income from foreclosure property of every real estate investment trust by multiplying the net income from foreclosure property by the highest rate of tax specified in section 11(b) for provisions determining the tax on the net income from foreclosure of property of every real estate investment trust by applying section 11 to such income as if such income constituted the taxable income of a corporation taxable under section 11 and struck out provisions requiring that for purposes of the preceding sentence, the surtax exemption be zero.
Subsec. (c). Pub. L. 96–223 temporarily substituted “Limitations applicable to dividends received from real estate investment trusts” for “Restrictions applicable to dividends received from real estate investment trusts” in heading, designated existing provisions as par. (1), substituted “(1) Capital gain dividend.—For purposes of section 116 (relating to exclusion for dividends and interest received by individuals), a capital gain dividend (as defined in subsection (b)(3)(C)) received from a real estate investment trust shall not be considered a dividend” for “For purposes of section 116 (relating to an exclusion for dividends received by individuals) and section 243 (relating to deductions for dividends received by corporations), a dividend received from a real estate investment trust which meets the requirements of this part shall not be considered as a dividend” in par. (1) as so designated, and added pars. (2) to (6).
1978—Subsec. (b)(1). Pub. L. 95–600, § 301(b)(12), substituted “a tax” for “a normal tax and surtax”.
Subsec. (b)(3)(A)(ii). Pub. L. 95–600, § 403(c)(3), substituted “a tax determined at the rate provided in section 1201(a) on” for “a tax of 30 percent of”.
Subsec. (b)(3)(C). Pub. L. 95–600, § 362(d)(3), substituted “section 860(e)” for “section 859(c)”.
Subsec. (b)(6)(C) to (E). Pub. L. 95–600, § 363(b), added subpars. (C) to (E).
1976—Subsec. (a). Pub. L. 94–455, §§ 1604(j), (k)(2)(B), 1906(b)(13)(A), substituted “(other than subsection (d) of this section and subsection (g) of section 856)” for “(other than subsection (d) of this section)” in provisions preceding par. (1), in par. (1) redesignated existing subpars. (A) and (B) as cls. (i) and (ii), respectively, of subpar. (A), added subpar. (B), in both cls. (i) and (ii) of subpar. (A) as redesignated raised the percentage to 95 percent for taxable years beginning on and after Jan. 1, 1980, and, in cl. (i) of subpar. (A) as redesignated, inserted provision for the exclusion of net capital gain, and struck out “or his delegate” after “Secretary” in par. (2).
Subsec. (b)(1). Pub. L. 94–455, § 1901(b)(1)(V), struck out provision that, for purposes of computing the normal tax under section 11, the taxable income and the dividends paid deduction of such real estate investment trust for the taxable year (computed without regard to capital gains dividends) would be reduced by the deduction provided by section 22 (relating to partially tax-exempt interest.
Subsec. (b)(2). Pub. L. 94–455, §§ 1602(b)(2), 1603(c)(5), 1606(a), (d), 1607(b)(1)(A), (2), struck out subpar. (A) which provided for the exclusion of the excess, if any, of the net long-term capital gain over the net short-term capital loss, and subpar. (E) which prohibited the allowance of the net operating loss deduction provided in section 172, redesignated subpars. (B), (C), (D), and (F) as subpars. (A), (B), (C), and (D), respectively, added subpars. (E) and (F), and in subpar. (B) as redesignated substituted “subparagraph (D)” for “paragraph (F)” and struck out “shall be computed without regard to capital gains dividends and” after “shall be allowed, but”.
Subsec. (b)(3)(A). Pub. L. 94–455, § 1607(a), substituted provisions setting an alternative tax in case of capital gains under which, if for any taxable year, a real estate investment trust has a net capital gain, then, in lieu of the tax imposed by subsection (b)(1), there is imposed a tax (if such tax is less than the tax imposed by such subsection) to consist of the sum of a tax, computed as provided in subsection (b)(1), on the real estate investment trust taxable income (determined by excluding such net capital gain and by computing the deduction for dividends paid without regard to capital gain dividends), and a tax of 30 percent of the excess of the net capital gain over the deduction for dividends paid (as defined in section 561) determined with reference to capital gains dividends only, for provisions posing a tax for each taxable year determined as provided in section 1201(a), on the excess, if any, of the net long-term capital gain over the sum of the net short-term capital loss and the deduction for dividends paid (as defined in section 561) determined with reference to capital gains dividends only.
Subsec. (b)(3)(B). Pub. L. 94–455, § 1402(b)(2), provided that “9 months” would be changed to “1 year”.
Pub. L. 94–455, § 1402(b)(1)(P), provided that “6 months” would be changed to “9 months” for taxable years beginning in 1977.
Subsec. (b)(3)(C). Pub. L. 94–455, §§ 1601(c), 1607(b)(3), 1901(a)(112), (b)(33)(K), inserted “; except that, if there is an increase in the excess described in subparagraph (A)(ii) of this paragraph for such year which results from a determination (as defined in section 859(c)), such designation may be made with respect to such increase at any time before the expiration of 120 days after the date of such determination” after “30 days after the close of its taxable year”, substituted “net capital gain” for “excess of the net long-term capital gain over the net short-term capital loss” in provision covering the portion of distributions which shall be capital gain dividends, inserted provision that the net capital gain be deemed not to exceed the real estate investment trust taxable income, and struck out provision which specified the source of deductions for dividends paid in the case of taxable years beginning before Jan. 1, 1975.
Subsec. (b)(4)(B)(i). Pub. L. 94–455, § 1604(c)(2), inserted reference to subparagraph (G) of section 856(c)(3).
Subsec. (b)(5). Pub. L. 94–455, § 1602(b)(1), added par. (5). Former par. (5) redesignated (7) and amended.
Subsec. (b)(6). Pub. L. 94–455, § 1603(b), added par. (6).
Subsec. (b)(7). Pub. L. 94–455, § 1402(b)(2), provided that “9 months” would be changed to “1 year”.
Pub. L. 94–455, §§ 1402(b)(1)(P), 1602(b)(1), redesignated par. (5) as (7) and provided that “6 months” would be changed to “9 months” for taxable years beginning in 1977.
Subsec. (d). Pub. L. 94–455, § 1604(f)(3)(B), substituted “a domestic corporation, trust,” for “a domestic unincorporated trust”.
Subsec. (e). Pub. L. 94–455, § 1605(b)(2), added subsec. (e).
1975—Subsec. (a)(1). Pub. L. 93–625, § 6(d)(2), incorporated existing par. (1) provisions in par. (1) introductory text and provisions designated as subpar. (A), substituted in subpar. (A) “(determined without regard to the deduction for dividends paid (as defined in section 561))” for “(determined without regard to subsection (b)(2)(C))”, and added subpar. (B).
Subsec. (b)(2)(C). Pub. L. 93–625, § 6(d)(4), provided for computation of deduction for dividends paid without regard to that portion of such deduction which is attributable to the amount excluded under subparagraph (F).
Subsec. (b)(2)(F). Pub. L. 93–625, § 6(d)(3), added subpar. (F).
Subsec. (b)(4), (5). Pub. L. 93–625, § 6(c), added par. (4) and redesignated former par. (4) as (5).
1969—Subsec. (b)(3)(A). Pub. L. 91–172, § 511(c)(3)(A), substituted “determined as provided in section 1201(a), on” for “of 25 percent of.”
Subsec. (b)(3)(C). Pub. L. 91–172, § 511(c)(3)(B), inserted provision requiring for the purposes of the deduction for capital gains dividends paid, in the case of a taxable year beginning before Jan. 1, 1975, the deduction for dividends paid shall first be made from the amount subject to tax in accordance with section 1201(a)(1)(B), to the extent thereof, and then from the amount subject to tax in accordance with section 1201(a)(1)(A).
1964—Subsec. (c). Pub. L. 88–272 struck out “section 34(a) (relating to credit for dividends received by individuals),” before “section 116” and the comma before “and”.