Page:United States Statutes at Large Volume 94 Part 1.djvu/358

 94 STAT. 308

Ante, p. 305.

PUBLIC LAW 96-223—APR. 2, 1980 "(A) the real estate investment trust meets the requirements of this part for the taxable year during which it paid the dividend, and "(B) the aggregate interest received by the real estate investment trust for the taxable year is less than 75 percent of its gross income, then, in computing the exclusion under section 116, there shall be taken into account only that portion of the dividend which bears the same ratio to the amount of such dividend as aggregate interest received bears to gross income. "(3) ADJUSTMENTS TO GROSS INCOME AND AGGREGATE INTEREST

26 USC 163.

26 USC 857.

RECEIVED.—For purposes of paragraph (2)— "(A) gross income does not mclude the net capital gain, "(B) gross income and aggregate interest received shall each be reduced by so much of the deduction allowable by section 163 for the taxable year (other than for interest on mortgages on real property owned by the real estate investment trust) as does not exceed aggregate interest received for the taxable year, and "(C) gross income shall be reduced by the sum of the taxes imposed by paragraphs (4), (5), and (6) of section 857(b). "(4) AGGREGATE INTEREST RECEIVED.—For purposes of this subsection, the term 'aggregate interest received means only interest described in section 116(c)(l)"(5) NOTICE TO SHAREHOLDERS.—The amount of any distribution by a real estate investment trust which may be taken into account as a dividend for purposes of the exclusion under section 116 shall not exceed the amount so designated by the trust in a written notice to its shareholders mailed not later than 45 days after the close of its taxable year. "(6) CROSS REFERENCE.— "For restriction on dividends received by a corporation, see section

243(c)(2).'* 26 USC 116 note. (c) EFFECTIVE DATE.—The amendments made by this section shall apply with respect to taxable years beginning after December 31, 1980, and before January 1, 1983. Approved April 2, 1980.

LEGISLATIVE HISTORY: HOUSE REPORTS: No. 96-304 (Comm. on Ways and Means) and No. 96-817 (Comm. of eonference). SENATE REPORT No. 96-394 (Comm. on Finance). C O N G R E S S I O N A L RECORD:

Vol. 125 (1979): June 28, considered and peissed House. Nov. 15, 16, 19, 20, 26-30, Dec. 3-7, 10-15, 17, considered and passed Senate, amended. Vol. 126 (1980): Mar. 12, 13, House agreed to conference report. Mar. 19-21, 24-27, Senate agreed to conference report. WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS: Vol. 16, No. 14 (1980): Apr. 2, Presidential statement.

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