Sec. 318. ASSET AND INCOME TEST CLARIFICATION REGARDING ANCILLARY PERSONAL PROPERTY
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## SEC. 318 ASSET AND INCOME TEST CLARIFICATION REGARDING ANCILLARY PERSONAL PROPERTY ###
(a)In General **[**[26 U.S.C. 856](/us/usc/t26/s856)**]** Subsection
(c)of section 856, as amended by the preceding provisions of this Act, is amended by redesignating paragraph
(9)as paragraph
(10)and by inserting after paragraph
(8)the following new paragraph: > > #### “(9) Special rules for certain personal property which is ancillary to real property > > > ##### “(A) Certain personal property leased in connection with real property > > 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). > > > ##### “(B) Certain personal property mortgaged in connection with real property > > 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 obligation shall be treated— > > > ###### “(i) > > for purposes of paragraph (3)(B), as an obligation described therein, and > > > ###### “(ii) > > for purposes of paragraph (4)(A), as a real estate asset. > > 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).” > . ###
(b)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.
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Sec. 318
ASSET AND INCOME TEST CLARIFICATION REGARDING ANCILLARY PERSONAL PROPERTY
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