Sec. 321. TREATMENT OF CERTAIN SERVICES PROVIDED BY TAXABLE REIT SUBSIDIARIES
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## SEC. 321 TREATMENT OF CERTAIN SERVICES PROVIDED BY TAXABLE REIT SUBSIDIARIES ###
(a)Taxable REIT Subsidiaries Treated in Same Manner as Independent Contractors for Certain Purposes ####
(1)Marketing and development expenses under rental property safe harbor **[**[26 U.S.C. 857](/us/usc/t26/s857)**]** Clause
(v)of section 857(b)(6)(C) is amended by inserting “or a taxable REIT subsidiary” before the period at the end. ####
(2)Marketing expenses under timber safe harbor Clause
(v)of section 857(b)(6)(D) is amended by striking “, in the case of a sale on or before the termination date,”. ####
(3)Foreclosure property grace period **[**[26 U.S.C. 856](/us/usc/t26/s856)**]** Subparagraph
(C)of section 856(e)(4) is amended by inserting “or through a taxable REIT subsidiary” after “receive any income”. ###
(b)Tax on Redetermined TRS Service Income ####
(1)In general Subparagraph
(A)of section 857(b)(7) is amended by striking “and excess interest” and inserting “excess interest, and redetermined TRS service income”. ####
(2)Redetermined trs service income Paragraph
(7)of section 857(b) is amended by redesignating subparagraphs
(E)and
(F)as subparagraphs
(F)and (G), respectively, and inserting after subparagraph
(D)the following new subparagraph: > > ##### “(E) Redetermined trs service income > > > ###### “(i) In general > > The term ‘redetermined TRS service income’ means gross income of a taxable REIT subsidiary of a real estate investment trust attributable to services provided to, or on behalf of, such trust (less deductions properly allocable thereto) to the extent the amount of such income (less such deductions) would (but for subparagraph (F)) be increased on distribution, apportionment, or allocation under section 482. > > > ###### “(ii) Coordination with redetermined rents > > Clause
(i)shall not apply with respect to gross income attributable to services furnished or rendered to a tenant of the real estate investment trust (or to deductions properly allocable thereto).” > . ####
(3)Conforming amendments Subparagraphs (B)(i) and
(C)of section 857(b)(7) are each amended by striking “subparagraph (E)” and inserting “subparagraph (F)”. ###
(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.
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