Page:United States Statutes at Large Volume 98 Part 1.djvu/719

 PUBLIC LAW 98-369-JULY 18, 1984

98 STAT. 671

(B) For purposes of subparagraph (A), the term "qualified Puerto Rican corporation" means any corporation organized in Puerto Rico— (i) which is described in section 957(c) of such Code or ': would be so described if any dividends it received from any other corporation described in such section 957(c) were treated as gross income of the type described in ^., ^uiT'> such section 957(c), and (ii) does not, at any time during the taxable year, own (within the meaning of section 958 of such Code but before applying paragraph (2) of section 269B(a) of such Ante, p. 669. Code) any stock of any corporation which is not described in such section 957(c).

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(5) TREATY RULE NOT TO APPLY TO STAPLED ENTITIES ENTITLED

TO TREATY BENEFITS AS OF JUNE 30, 1983.—In the case of any entity which was a stapled entity as of June 30, 1983, subsection (d) of section 269B of such Code shall not apply to any treaty benefit to which such entity was entitled as of June 30, 1983.

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(6) ELECTIONS SUBSIDIARIES.—

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(A) IN GENERAL.—In the case of any foreign corporation ^^^H:^P QH •;i£ and domestic corporation which as of June 30, 1983, were stapled entities, such domestic corporation may elect (in lieu of applying paragraph (1) of section 269B(a) of such Code) to be treated as owning all interests in the foreign corporation which constitute stapled interests with respect to stock of the domestic corporation. (B) ELECTION.—Any election under subparagraph (A) shall be made not later than 180 days after the date of the enactment of this Act and shall be made in such manner as '' '-^ -^ the Secretary of the Treasury or his delegate shall prescribe. (C) ELECTION IRREVOCABLE.—Any election under subparagraph (A), once made, may be revoked only with the consent of the Secretary of the Treasury or his delegate. (7) OTHER STAPLED ENTITIES WHICH INCLUDE REAL ESTATE INVESTMENT TRUST.—
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(A) IN GENERAL.—Paragraph (3) of section 269B(a) of such Code shall not apply in determining the application of the . provisions of part II of subchapter M of chapter 1 of such 26 USC 856. Code to any qualified real estate investment trust which is a part of a group of stapled entities— (i) which was created pursuant to a written board of ..,, directors resolution adopted on April 5, 1984, and (ii) all members of such group were stapled entities as of June 16, 1985. (B) QUALIFIED REAL ESTATE INVESTMENT TRUST.—The term "qualified real estate investment trust" means any real estate trust— YC, (i) at least 75 percent of the gross income of which is derived from interest on obligations secured by mortgages on real property (as defined in section 856 of such Code), (ii) with respect to which the interest on the obligations described in clause (i) made or acquired by such trust (other than to persons who are independent contractors, as defined in section 856(d)(3) of such Code) is

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