Sec. 3640. Debt instruments of publicly offered REITs and mortgages treated as real estate assets
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Subparagraph
(B)of section 856(c)(5) is amended— by striking and shares and inserting , shares , and by inserting , and debt instruments issued by publicly offered REITs before the period at the end of the first sentence. Subparagraph
(H)of section 856(c)(3) is amended by inserting (other than a nonqualified publicly offered REIT debt instrument) after real estate asset . Subparagraph
(B)of section 856(c)(4) is amended by redesignating clause
(iii)as clause
(iv)and by inserting after clause
(ii)the following new clause: not more than 25 percent of the value of its total assets is represented by nonqualified publicly offered REIT debt instruments, and . Paragraph
(5)of section 856(c), as amended by the preceding provisions of this Act, is amended by adding at the end the following new subparagraph: The term publicly offered REIT has the meaning given such term by section 562(c)(3). The term nonqualified publicly offered REIT debt instrument means any real estate asset which would cease to be a real estate asset if subparagraph
(B)were applied without regard to the reference to debt instruments issued by publicly offered REITs . . Subparagraph
(B)of section 856(c)(5) is amended by inserting or on interests in real property after interests in mortgages on real property . The amendments made by this section shall apply to taxable years beginning after December 31, 2014.