Sec. 320. Modification of REIT earnings and profits calculation to avoid duplicate taxation
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/bill/114/hr/2029/eah/section-320·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 857(d) is amended— by amending paragraph
(1)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. , and 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). . Section 562(e)(1), as amended by the preceding provisions of this Act, is amended by striking deduction, the earnings and all that follows and inserting the following: deduction— 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 section 857(d)(1) shall be applied without regard to subparagraph
(B)thereof. . The amendments made by this section shall apply to taxable years beginning after December 31, 2015.