Page:United States Statutes at Large Volume 122.djvu/2923

 12 2 STA T . 2 90 0 PUBLIC LA W 110 – 2 8 9 —J UL Y3 0, 2008 SEC.30 33. C ONF O RMI N G FOREIGN C U RRENC Y RE V ISIONS. (a)NETINCOM E FR OM FOREC L O SU RE P RO P ERT Y.—Cl a use ( i ) of se ct io n857 ( b )( 4 )( B )isa m en d ed to r ead as follo w s

‘(i) g ain (including an y foreign currency gain, as defined in section 9 88(b)( 1 )) from t h e sale or other dis p osition of foreclosure property described in section 1 2 21(a)(1) and the gross income for the ta x able year deri v ed from foreclosure property (as defined in section 85 6 (e)), but only to the extent such gross income is not described in (or, in the case of foreign currency gain, not attributable to gross income described in) section 856(c)( 3 ) other than subparagraph (F) thereof, over ’ ’. (b) NET INCOME FROM PRO HIB ITE DT R A NSACTIONS.—Clause (i) of section 857(b)(6)(B) is amended to read as follows: ‘‘(i) the term ‘net income derived from prohibited transactions’ means the excess of the gain (including any foreign currency gain, as defined in section 988(b)(1)) from prohibited transactions over the deduc - tions (including any foreign currency loss, as defined in section 988(b)(2)) allowed by this chapter which are directly connected with prohibited transactions ’’. Subti t leB—Tax able REI T Sub s i d ia r ies SEC. 30 41 . CONFORMING TAX A BL E REIT SUBSI D IARY ASSET TEST. S ection 856(c)(4)(B)(ii) is amended— (1) by stri k ing ‘‘2 0 percent’’ and inserting ‘‘25 percent’’, and (2) by striking ‘‘ RE IT subsidiaries’’ and all that follows, and inserting ‘‘REIT subsidiaries,’’. Subtitle C — D ealer Sales SEC. 30 5 1. H OLDING P ERIOD UNDER SAFE HARBOR. (a) IN G ENERAL.—Section 857(b)(6) (relating to income from prohibited transactions) is amended— (1) by striking ‘‘4 years’’ in subparagraphs (C)(i), (C)(iv), and ( D )(i) and inserting ‘‘2 years’’, (2) by striking ‘‘4-year period’’ in subparagraphs (C)(ii), (D)(ii), and (D)(iii) and inserting ‘‘2-year period’’, and (3) by striking ‘‘real estate asset’’and all that follows through ‘‘if’’ in the matter preceding clause (i) of subparagraphs (C) and (D), respectively, and inserting ‘‘real estate asset (as defined in section 856(c)(5)(B)) and which is described in section 1221(a)(1) if’’. (b) RETENTION O F E X ISTIN GL A W .—Section 857(b)(6) is amended— (1) by striking subparagraph (G) and redesignating sub- paragraphs ( H ) and (I) as subparagraphs (G) and (H), respec- tively, and (2) in subparagraph (G), as so redesignated, by adding at the end the following: ‘‘For purposes of the preceding sen- tence, the reference to subparagraph (D) shall be a reference

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