Page:United States Statutes at Large Volume 92 Part 3.djvu/220

 92 STAT. 2852 26 USC 6422, 6515.

26 USC 6503.

PUBLIC LAW 95-600—NOV. 6, 1978 (4) Sections 6422(14) and 6515(5) are each amended— (A) by inserting "regulated investment company or" before "re£Q estate investment trust", and (B) by striking out "859" and inserting in lieu thereof "860", (5) Paragraph (5) of section 6503(i) is amended to read as follows: "(5) Deficiency dividends in the case of a reg^ulated investment company or a real estate investment trust, see section 860(h)."

26 USC 859, ^^-

(6) Part II of subchapter M of chapter 1 is amended by striking out section 859 and redesignating section 860 as section 859. (7) The table of sections for part II of subchapter M of chapter 1 is simended by striking out the items relating to sections 859 and 860 and inserting in lieu thereof the following: "Sec. 859. Adoption of annual accounting period."

(8) The table of parts for subchapter M of chapter 1 is amended by adding at the end thereof the following new item: "Part III. Provisions which apply to both regulated investment companies and real estate investment trusts."

26 USC 6697.

26 USC 860 "o*^26 USC 860.

(9) The table of sections for subchapter B of chapter 68 is amended by striking out the item relating to section 6697 and inserting in lieu thereof the following: "Sec. 6697. Assessable penalties with respect to liability for tax of qualified investment entities." (e) EFFECTIVE DATE.—The amendments made by this section shall

apply with respect to determinations (as defined in section 860(d) of the Interneil Revenue Code of 1954) after the date of the enactment of this Act. SEC. 363. REAL ESTATE INVESTMENT TRUST PROVISIONS. (a) LIMITATIONS.—

26 USC 856.

26 USC 857. 26 USC 856.

26 USC 856.

26 USC 857.

(1) Section 856(c)(2) (relating to limitations) is amended by striking out the word "and" at the end of subparagraph (F), by inserting the word "and" at the end of subparagraph (G), and by adding the following new subparagraph at the end thereof: "(H) gain from the sale or other disposition of a real estate 8isset which is not a prohibited transaction solely by reason of section 857(b)(6);". (2) Section 856(c)(3) (relating to limitations) is amended by striking out the word "and" at the end of subparagraph (F), by inserting the word "and" at the end of subparagraph (G), and by adding the following new subparagraph at the end thereof: "(H) gain from the sale or other disposition of a real estate asset which is not a prohibited transaction solely by reason of section 857(b)(6);". (3) Subparagraph (B) of section 856(c)(4) (relating to limitations) is amended to read as follows: "(B) property in a transaction which is a prohibited transaction; and". Qo,) PROHIBITED TRANSACTIONS.—Paragraph (6) of section 857(b) (relating to income from prohibited transactions) is amended by adding the following subparagraphs at the end thereof: "(C) CERTAIN SALES NOT TO CONSTITUTE PROHIBITED TRANS-

ACTIONS.—For purposes of this part, the term 'prohibited transaction' does not include a sale of property which is a real estate asset as defined in section 856(c)(6)(B) if— "(i) the trust has held the property for not less than 4 years;

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