,i  #aac? ,,congress  #a/ ,session  ,h4 
,r4 #bhgj  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,july #ca1 #bjac ,mr4 
,brady ( ,texas 7= himself1 ,mr4        
,cr[ley1 ,ms4 ,j5k9s1 ,mr4 ,blum5au]1   
,mr4 ,rangel1 ,mr4 ,roskam1 ,mr4        
,pascrell1 ,mr4 ,van ,holl51 ,mr4 ,sam  
,johnson ( ,texas1 ,mr4 ,l>son (        
,connecticut1 ,mr4 ,sessions1 ,mr4      
,g]la*1 ,mr4 ,k9d1 & ,mr4 ,k+ ( ,new    
,york7 introduc$ ! foll[+ bill2 :i* 0   
ref]r$ to ! ,committee on ,ways & ,means
  ,a ,,bill  ,to am5d ! ,int]nal ,rev5ue
 ,code ( #aihf to exempt c]ta9 /ock (   
real e/ate inve/m5t tru/s f ! tax on    
=eign inve/m5ts 9 ,unit$ ,/ates real    
prop]ty int]e/s1 & = o!r purposes4  #a4 
,%ort title ,?is ,act may be cit$ z !   
,real ,e/ate ,inve/m5t & ,jobs ,act (   
#bjac4  #b4 ,exception f ,,firpta =     
c]ta9 /ock ( real e/ate inve/m5t tru/s  
7a7 ,9 g5]al ,p>agraph 7#c7 ( section   
#hig7;c7 ( ! ,int]nal ,rev5ue ,code (   
#aihf is am5d$--  7#a7 by /rik+ all t   
prec$es ,if any class & ins]t+ ! foll[+3

  7#c7 ,exceptions = c]ta9 /ock  7,a7   
,exception = /ock regul>ly trad$ on     
e/abli%$ securities m>kets  1  7#b7 by  
ins]t+ be=e ! p]iod ! foll[+3 4 ,9 !    
case ( any class ( /ock ( a real e/ate  
inve/m5t tru/1 ! prec$+ s5t5ce %all be  
appli$ by sub/itut+ #aj p]c5t = #e      
p]c5t1 &  7#c7 by add+ at ! end ! foll[+
 new subp>agraph3  7,b7 ,exception =    
c]ta9 /ock 9 real e/ate inve/m5t tru/s  
7i7 ,9 g5]al ,/ock ( a real e/ate       
inve/m5t tru/ held by a qualifi$        
%>ehold] %all n be treat$ z a ,unit$    
,/ates real prop]ty int]e/ except to !  
ext5t t an inve/or 9 ! qualifi$ %>ehold]
 7o!r ?an an inve/or t is a qualifi$    
%>ehold]7 holds 7directly or indirectly 
?r\gh ! qualifi$ %>ehold]7 m ?an #aj    
p]c5t ( ! /ock ( su* real e/ate inve/m5t
 tru/4  7ii7 ,qualifi$ %>ehold] ,=      
purposes ( ?is subp>agraph1 ! t]m       
qualifi$ %>ehold] means an entity--     
7,i7 t is eligible = b5efits ( a        
compreh5sive income tax treaty ) !      
,unit$ ,/ates :i* includes an ex*ange ( 

in=mation program1  7,,ii7 t is a       
qualifi$ collective inve/m5t vehicle1   
7,,iii7 ^: pr9cipal class ( int]e/s is  
li/$ & regul>ly trad$ on "o or m        
recogniz$ /ock ex*anges 7z def9$ 9 su*  
compreh5sive income tax treaty71 &      
7,,iv7 t ma9ta9s records on ! id5tity ( 
ea* p]son :o1 at any "t dur+ ! qualifi$ 
%>ehold]'s taxable ye>1 is ! direct own]
 ( m ?an #aj p]c5t ( ! class ( int]e/   
describ$ 9 clause 7,,iii74  7iii7       
,qualifi$ collective inve/m5t vehicle ,=
 purposes ( ?is subp>agraph1 ! t]m      
qualifi$ collective inve/m5t vehicle    
means an entity t--  7,i7 w\ld be       
eligible = a r$uc$ rate ( )hold+ "u su* 
compreh5sive income tax treaty ) respect
 to ord9>y divid5ds paid by a real e/ate
 inve/m5t tru/1 ev5 if su* entity holds 
m ?an #aj p]c5t ( ! /ock ( su* real     
e/ate inve/m5t tru/1  7,,ii7 is a       
corporation 7o!r ?an a corporation t is 
entitl$ to a d$uction or exclusion =    
divid5ds paid to its %>ehold]s or       
subject to a requirem5t to di/ribute any

 portion ( its taxable income annually7 
engag$ prim>ily 9 ! trade or bus9ess (  
op]at+ or manag+ real e/ate entities or 
assets ei!r directly or ?r\gh entities  
"u common control 7)9 ! mean+ (         
subsections 7a7 & 7b7 ( section #eb71 or
  7,,iii7 is designat$ z a qualifi$     
collective inve/m5t vehicle by !        
,secret>y & is ei!r--  7aa7 fiscally    
transp>5t )9 ! mean+ ( section #hid1 or 
7bb7 requir$ to include divid5ds 9 its  
gross income1 b is entitl$ to a d$uction
 = di/ributions to its inve/ors4  4  7b7
 ,di/ributions by real e/ate inve/m5t   
tru/s ,p>agraph 7#a7 ( section #hig7;h7 
( ! ,int]nal ,rev5ue ,code ( #aihf is   
am5d$--  7#a7 by /rik+ ,any di/ribution 
& ins]t+ ! foll[+3  7,a7 ,9 g5]al       
,except z provid$ 9 subp>agraph 7,b71   
any di/ribution  1  7#b7 by ins]t+ 7#aj 
p]c5t 9 ! case ( /ock ( a real e/ate    
inve/m5t tru/7 aft] #e p]c5t ( su* class
 ( /ock1  7#c7 by ins]t+ 1 & any        
di/ribution to a qualifi$ %>ehold] 7z   
def9$ 9 subsection 7c77#c77;,b77ii77    

%all n be treat$ z ga9 recogniz$ f !    
sale or ex*ange ( a ,unit$ ,/ates real  
prop]ty int]e/ to ! ext5t t ! /ock ( !  
real e/ate inve/m5t tru/ held by su*    
qualifi$ %>ehold] is n treat$ z a ,unit$
 ,/ates real prop]ty int]e/ "u          
subsection 7c77#c77;,b7 be=e ! p]iod at 
! end ( ! second s5t5ce1 &  7#d7 by add+
 at ! end ! foll[+ new subp>agraph3     
7,b7 ,special rule ,subp>agraph 7,a7    
%all n apply to di/ributions :i* are    
treat$ z a sale or ex*ange ( /ock or    
prop]ty pursuant to section             
#cja7;c77#c71 #cjb1 or #cca4  4  7c7    
,def9ition ,p>agraph 7#d7 ( section     
#hig7;h7 ( ! ,int]nal ,rev5ue ,code (   
#aihf is am5d$ by add+ at ! end (       
subp>agraph 7,b7 ! foll[+3 ,9 det]m9+   
:e!r a qualifi$ inve/m5t entity is      
dome/ically controll$1 any /ock 9 !     
qualifi$ inve/m5t entity held by ano!r  
qualifi$ inve/m5t entity %all be treat$ 
z held by a =eign p]son unless su* o!r  
qualifi$ inve/m5t entity is dome/ically 
controll$4 ,9 mak+ su* a det]m9ation1 a 

qualifi$ inve/m5t entity %all be p]mitt$
 to presume t /ock held by a hold] (    
less ?an #e p]c5t ( a class ( /ock      
regul>ly trad$ on an e/abli%$ securities
 m>ket 9 ! ,unit$ ,/ates is held by     
,unit$ ,/ates p]sons ?r\gh\t ! te/+     
p]iod except to ! ext5t t ! qualifi$    
inve/m5t entity has actual k reg>d+ /ock
 own]%ip44  7d7 ,con=m+ am5dm5t         
,subp>agraph 7,c7 ( section #hig7;c77#f7
 ( ! ,int]nal ,rev5ue ,code ( #aihf is  
am5d$--  7#a7 by /rik+ m ?an #e p]c5t & 
ins]t+ m ?an #e or #aj p]c5t1 :i*ev] is 
applicable11 &  7#b7 by /rik+ sub/itut+ 
#e p]c5t = #ej p]c5t7 & ins]t+ sub/itut+
 #e p]c5t or #aj p]c5t1 :i*ev] is       
applicable = #ej p]c5t74  7e7 ,effective
 dates  7#a7 ,9 g5]al ,! am5dm5ts made  
by subsection 7a7 %all apply to         
dispositions on & aft] ! date ( !       
enactm5t ( ?is ,act4  7#b7 ,di/ributions
 ,! am5dm5ts made by subsection 7b7 %all
 apply to any di/ribution by a real     
e/ate inve/m5t tru/ on or aft] ! date ( 
! enactm5t ( ?is ,act :i* is treat$ z a 

d$uction = a taxable ye> ( su* tru/ end+
 aft] su* date4  7#c7 ,def9itions ,!    
am5dm5ts made by subsections 7c7 & 7d7  
%all take effect on ! date ( ! enactm5t 
( ?is ,act4  #c4 ,unit$ ,/ates real     
prop]ty int]e/  7a7 ,unit$ ,/ates real  
prop]ty int]e/ ,subp>agraph 7,b7 (      
section #hig7;c77#a7 ( ! ,int]nal       
,rev5ue ,code ( #aihf is am5d$ by /rik+ 
all t prec$es 7i7 z ( ! date ( !        
disposition & ins]t+ ! foll[+3  7,b7    
,exclusion = int]e/ 9 c]ta9 corporations
 ,! t]m ,unit$ ,/ates real prop]ty      
int]e/ does n include any int]e/ 9 a    
corporation 7o!r ?an a qualifi$ inve/m5t
 entity 7z def9$ 9 subsection           
7h77#d77;,a77i77 if--  4  7b7 ,effective
 date ,! am5dm5t made by ?is section    
%all take effect on ! date ( ! enactm5t 
( ?is ,act4