Sec. 138520. Modification of REIT Constructive ownership rules
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/bill/117/hr/5376/rh/section-138520·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 856(d)(5) is amended by striking and at the end of subparagraph (A), by striking the period at the end of subparagraph
(B)and inserting , and , and by adding at the end the following: except as otherwise provided by the Secretary, stock, assets, and net profits constructively owned by a partnership, estate, trust, or corporation by reason of the application of section 318(a)(3) (after application of subparagraphs
(A)and (B)) shall not be considered as owned by it for purposes of again applying such section in order to make another person the constructive owner of such stock, assets, or net profits. Subparagraph
(C)shall not prevent any person from being the constructive owner of stock, assets, or net profits of any person as the result of any other application of section 318(a) (as modified by this paragraph). . The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act. Nothing in this section or the amendments made by this section shall be construed to create any inference with respect to the proper application of section 318 of the Internal Revenue Code of 1986 to cases other than cases to which such amendments apply.