Sec. 3641. Asset and income test clarification regarding ancillary personal property
172 words·~1 min read·
/bill/113/hr/1/ih/section-3641A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Subsection
(c)of section 856 is amended by adding at the end the following new paragraph: Personal property shall be treated as a real estate asset for purposes of paragraph (4)(A) to the extent that rents attributable to such personal property are treated as rents from real property under subsection (d)(1)(C). In the case of an obligation secured by a mortgage on both real property and personal property, if the fair market value of such personal property does not exceed 15 percent of the total fair market value of all such property, such personal property shall be treated as real property for purposes of applying paragraphs (3)(B) and (4)(A). For purposes of the preceding sentence, the fair market value of all such property shall be determined in the same manner as the fair market value of real property is determined for purposes of apportioning interest income between real property and personal property under paragraph (3)(B). . The amendments made by this section shall apply to taxable years beginning after December 31, 2014.