Sec. 3643. Modification of REIT earnings and profits calculation to avoid duplicate taxation

306 words·~1 min read·/bill/113/hr/1/ih/section-3643

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(1)of section 857(d) is amended to read as follows: The earnings and profits of a real estate investment trust for any taxable year (but not its accumulated earnings) shall not be reduced by any amount which— is not allowable in computing its taxable income for such taxable year, and was not allowable in computing its taxable income for any prior taxable year. . Paragraph

(1)of section 562(e), as amended by the preceding provisions of this Act, is amended— by striking deduction, the earnings and inserting the following: deduction— the earnings , by striking the period at the end and inserting , and , and by adding at the end the following new subparagraph: section 857(d)(1) shall be applied without regard to subparagraph

(B)thereof. . Subsection

(d)of section 857 is amended by adding at the end the following new paragraphs: For purposes of this subsection, the term real estate investment trust includes a domestic corporation, trust, or association which is a real estate investment trust determined without regard to the requirements of subsection (a). For special rules for determining the earnings and profits of a real estate investment trust for purposes of the deduction for dividends paid, see section 562(e)(1). . Subparagraph

(A)of section 562(e)(1), as amended by the preceding provisions of this Act, is amended to read as follows: the earnings and profits of such trust for any taxable year (but not its accumulated earnings) shall be increased by the amount of gain (if any) on the sale or exchange of real property which is taken into account in determining the taxable income of such trust for such taxable year (and not otherwise taken into account in determining such earnings and profits), and . The amendments made by this section shall apply to taxable years beginning after December 31, 2014.