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Code · STATUTE-COMPILATIONS · Consolidated Appropriations Act, 2016 · Sec. 320

Sec. 320. MODIFICATION OF REIT EARNINGS AND PROFITS CALCULATION TO AVOID DUPLICATE TAXATION

386 words·~2 min read·/statute-compilations/comps-13909/sec-320

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## SEC. 320 MODIFICATION OF REIT EARNINGS AND PROFITS CALCULATION TO AVOID DUPLICATE TAXATION ###
(a)Earnings and Profits Not Increased by Amounts Allowed in Computing Taxable Income in Prior Years **[**[26 U.S.C. 857](/us/usc/t26/s857)**]** Section 857(d) is amended— ####
(1)by amending paragraph
(1)to read as follows: > > #### “(1) In general > > 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— > > > ##### “(A) > > is not allowable in computing its taxable income for such taxable year, and > > > ##### “(B) > > was not allowable in computing its taxable income for any prior taxable year.” > , and ####
(2)by adding at the end the following new paragraphs: > > #### “(4) Real estate investment trust > > 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). > > > #### “(5) Special rules for determining earnings and profits for purposes of the deduction for dividends paid > > 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).” > . ###
(b)Exception for Purposes of Determining Dividends Paid Deduction 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— > > > ##### “(A) > > 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 > > > ##### “(B) > > section 857(d)(1) shall be applied without regard to subparagraph
(B)thereof.” > . ###
(c)Effective Date **[**[26 U.S.C. 562 note](/us/usc/t26/s562)**]** The amendments made by this section shall apply to taxable years beginning after December 31, 2015.
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Sec. 320
MODIFICATION OF REIT EARNINGS AND PROFITS CALCULATION TO AVOID DUPLICATE TAXATION
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