Sec. 317. DEBT INSTRUMENTS OF PUBLICLY OFFERED REITS AND MORTGAGES TREATED AS REAL ESTATE ASSETS
372 words·~2 min read·
/statute-compilations/comps-13909/sec-317A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
## SEC. 317 DEBT INSTRUMENTS OF PUBLICLY OFFERED REITS AND MORTGAGES TREATED AS REAL ESTATE ASSETS ###
(a)Debt Instruments of Publicly Offered REITs Treated as Real Estate Assets ####
(1)In general **[**[26 U.S.C. 856](/us/usc/t26/s856)**]** Subparagraph
(B)of section 856(c)(5) is amended— #####
(A)by striking “and shares” and inserting “, shares”, and #####
(B)by inserting “, and debt instruments issued by publicly offered REITs” before the period at the end of the first sentence. ####
(2)Income from nonqualified debt instruments of publicly offered reits not qualified for purposes of satisfying the 75 percent gross income test Subparagraph
(H)of section 856(c)(3) is amended by inserting “(other than a nonqualified publicly offered REIT debt instrument)” after “real estate asset”. ####
(3)25 percent asset limitation on holding of nonqualified debt instruments of publicly offered reits 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: > > ###### “(iii) > > not more than 25 percent of the value of its total assets is represented by nonqualified publicly offered REIT debt instruments, and” > . ####
(4)Definitions related to debt instruments of publicly offered reits Paragraph
(5)of section 856(c) is amended by adding at the end the following new subparagraph: > > ##### “(L) Definitions related to debt instruments of publicly offered reits > > > ###### “(i) Publicly offered reit > > The term ‘publicly offered REIT’ has the meaning given such term by section 562(c)(2). > > > ###### “(ii) Nonqualified publicly offered reit debt instrument > > 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’.” > . ###
(b)Interests in Mortgages on Interests in Real Property Treated as Real Estate Assets Subparagraph
(B)of section 856(c)(5) is amended by inserting “or on interests in real property” after “interests in mortgages on real property”. ###
(c)Effective Date **[**[26 U.S.C. 856 note](/us/usc/t26/s856)**]** The amendments made by this section shall apply to taxable years beginning after December 31, 2015.
Connectionstraces to 1
Traces to 1 document
Citation graph
cites case law
Sec. 317
DEBT INSTRUMENTS OF PUBLICLY OFFERED REITS AND MORTGAGES TREATED AS REAL ESTATE ASSETS
Cites 1Cited by 0 across 0 sources