Sec. 3631. Prevention of tax-free spinoffs involving REITs
181 words·~1 min read·
/bill/113/hr/1/ih/section-3631A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 355 is amended by adding at the end the following new subsection: This section (and so much of section 356 as relates to this section) shall not apply to any distribution if either the distributing corporation or controlled corporation is a real estate investment trust. . Section 856(c) is amended by redesignating paragraph
(8)as paragraph
(9)and by inserting after paragraph
(7)the following new paragraph: If a corporation was a distributing corporation or a controlled corporation with respect to any distribution to which section 355 applied, such corporation (and any successor corporation) shall not be eligible to make any election under subsection (c)(1) for any taxable year prior to the 10th taxable year which begins after the taxable year in which such distribution was made. . Except as otherwise provided in this subsection, the amendments made by this section shall apply to distributions on or after February 26, 2014. The amendments made by this section shall not apply to any distribution made pursuant to an agreement which was binding on February 26, 2014, and at all times thereafter.