,i  #aad? ,,congress  #a/ ,session  ,h4 
,r4 #babh  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,april #cj1 #bjae ,mr4
 ,brady ( ,texas 7= himself1 ,mr4       
,cr[ley1 ,mr4 ,mc,dermott1 ,mr4 ,rei*]t1
 ,mr4 ,m>*ant1 ,mr4 ,"y ( ,indiana1 ,mr4
 ,roskam1 ,mr4 ,meehan1 ,ms4 ,l9da ,t4  
,sn*ez ( ,cali=nia1 ,mr4 ,r5acci1 ,mr4  
,re$1 ,mr4 ,tib]i1 ,mr4 ,blum5au]1 ,mr4 
,rangel1 ,mr4 ,?ompson ( ,cali=nia1 ,mr4
 ,l>son ( ,connecticut1 ,mr4 ,neal1 ,mr4
 ,k9d1 ,mr4 ,k+ ( ,new ,york1 ,mr4      
,sessions1 ,mr4 ,sam ,johnson ( ,texas1 
,mr4 ,dold1 ,mr4 ,bu*anan1 & ,ms4 ,j5k9s
 ( ,kansas7 introduc$ ! 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 title2 etc  7a7 ,%ort title ,?is 
,act may be cit$ z ! ,real ,e/ate       
,inve/m5t & ,jobs ,act ( #bjae4  7b7    
,am5dm5t ( #aihf ,code ,except z o!rwise

 expressly provid$1 :5ev] 9 ?is ,act an 
am5dm5t or repeal is express$ 9 t]ms (  
an am5dm5t to1 or repeal (1 a section or
 o!r provision1 ! ref]5ce %all be       
consid]$ to be made to a section or o!r 
provision ( ! ,int]nal ,rev5ue ,code (  
#aihf4  #b4 ,exception f ,,firpta =     
c]ta9 /ock ( real e/ate inve/m5t tru/s  
7a7 ,modifications ( own]%ip rules  7#a7
 ,9 g5]al ,section #hig is am5d$ by add+
 at ! end ! foll[+ new subsection3  7k7 
,special rules relat+ to real e/ate     
inve/m5t tru/s  7#a7 ,increase 9        
p]c5tage own]%ip = exceptions = p]sons  
hold+ publicly trad$ /ock  7,a7         
,dispositions ,9 ! case ( any           
disposition ( /ock 9 a real e/ate       
inve/m5t tru/1 p>agraphs 7#c7 &         
7#f77;,c7 ( subsection 7c7 %all ea* be  
appli$ by sub/itut+ m ?an #aj p]c5t = m 
?an #e p]c5t4  7,b7 ,di/ributions ,9 !  
case ( any di/ribution f a real e/ate   
inve/m5t tru/1 subsection 7h77#a7 %all  
be appli$ by sub/itut+ #aj p]c5t = #e   
p]c5t4  7#b7 ,/ock held by qualifi$     

%>ehold]s n treat$ z ,,usrpi  7,a7 ,9   
g5]al ,except z provid$ 9 subp>agraph   
7,b7--  7i7 /ock ( a real e/ate inve/m5t
 tru/ :i* is held directly by a qualifi$
 %>ehold] %all n be treat$ z a ,unit$   
,/ates real prop]ty int]e/1 &  7ii7     
not)/&+ subsection 7h77#a71 any         
di/ribution to a qualifi$ %>ehold] %all 
n be treat$ z ga9 recogniz$ f ! sale or 
ex*ange ( a ,unit$ ,/ates real prop]ty  
int]e/ to ! ext5t ! /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 clause 7i74  7,b7
 ,exception ,9 ! case ( a qualifi$      
%>ehold] ) #a or m applicable inve/ors--
 7i7 subp>agraph 7,a77i7 %all n apply to
 s mu* ( ! /ock ( a real e/ate inve/m5t 
tru/ held by a qualifi$ %>ehold] z be>s 
! same ratio to ! value ( ! int]e/s 7o!r
 ?an int]e/s held solely z a cr$itor7   
held by su* applicable inve/ors 9 !     
qualifi$ %>ehold] be>s to value ( all   
int]e/s 7o!r ?an int]e/s held solely z a
 cr$itor7 9 ! qualifi$ %>ehold]1 &  7ii7

 a p]c5tage equal to ! ratio det]m9$ "u 
clause 7i7 ( ! am\nts realiz$ by !      
qualifi$ %>ehold] ) respect to any      
disposition ( /ock 9 ! real e/ate       
inve/m5t tru/ or ) respect to any       
di/ribution f ! real e/ate inve/m5t tru/
 attributable to ga9 f sales or ex*anges
 ( a ,unit$ ,/ates real prop]ty int]e/  
%all be treat$ z am\nts realiz$ f !     
disposition ( ,unit$ ,/ates real prop]ty
 int]e/s4  7,c7 ,applicable inve/or ,=  
purposes ( ?is p>agraph1 ! t]m          
applicable inve/or means1 ) respect to  
any qualifi$ %>ehold] hold+ /ock 9 a    
real e/ate inve/m5t tru/1 a p]son 7o!r  
?an a qualifi$ %>ehold]7 :i*--  7i7     
holds an int]e/ 7o!r ?an an int]e/      
solely z a cr$itor7 9 su* qualifi$      
%>ehold]1 &  7ii7 holds m ?an #aj p]c5t 
( ! /ock ( su* real e/ate inve/m5t tru/ 
7:e!r or n by reason ( ! p]son's own]%ip
 int]e/ 9 ! qualifi$ %>ehold]74  7,d7   
,con/ructive own]%ip rules ,= purposes (
 subp>agraphs 7,b77i7 & 7,c71 !         
con/ructive own]%ip rules "u subsection 

7c77#f77;,c7 %all apply4  7#c7 ,qualifi$
 %>ehold] ,= purposes ( ?is subsection--
  7,a7 ,9 g5]al ,! t]m qualifi$ %>ehold]
 means a =eign p]son-- 7i7 :i* is       
eligible = b5efits ( a compreh5sive     
income tax treaty ) ! ,unit$ ,/ates :i* 
includes an ex*ange ( in=mation program1
  7ii7 :i* is a qualifi$ collective     
inve/m5t vehicle1  7iii7 ! pr9cipal     
class ( int]e/s ( :i* is li/$ & regul>ly
 trad$ on #a or m recogniz$ /ock        
ex*anges 7z def9$ 9 su* compreh5sive    
income tax treaty71 &  7iv7 :i* ma9ta9s 
records on ! id5tity ( ea* p]son :o1 at 
any "t dur+ ! =eign p]son's taxable ye>1
 holds directly #e p]c5t or m ( ! class 
( int]e/ describ$ 9 clause 7iii74  7,b7 
,qualifi$ collective inve/m5t vehicle ,=
 purposes ( ?is subsection1 ! t]m       
qualifi$ collective inve/m5t vehicle    
means a =eign p]son--  7i7 :i*1 "u !    
compreh5sive income tax treaty describ$ 
9 subp>agraph 7,a77i71 is eligible = a  
r$uc$ rate ( )hold+ ) respect to ord9>y 
divid5ds paid by a real e/ate inve/m5t  

tru/ ev5 if su* p]son holds m ?an #aj   
p]c5t ( ! /ock ( su* real e/ate inve/m5t
 tru/1 or  7ii7 :i* is designat$ z a    
qualifi$ collective inve/m5t vehicle by 
! ,secret>y & is ei!r--  7,i7 fiscally  
transp>5t )9 ! mean+ ( section #hid1 or 
7,,ii7 requir$ to include divid5ds 9 its
 gross income1 b entitl$ to a d$uction =
 di/ributions to p]sons hold+ int]e/s   
7o!r ?an int]e/s solely z a cr$itor7 9  
su* =eign p]son4  4  7#b7 ,con=m+       
am5dm5ts  7,a7 ,section                 
#hig7;c77#a77;,a7 is am5d$ by ins]t+ or 
subsection 7k7 aft] subp>agraph 7,b7 9 !
 matt] prec$+ clause 7i74  7,b7 ,section
 #heg7;b77#c77;,f7 is am5d$ by ins]t+ or
 section #hig7k77#b77;,a77ii7 aft]      
#hig7;h77#a74  7b7 ,det]m9ation (       
dome/ic control  7#a7 ,special own]%ip  
rules  7,a7 ,9 g5]al ,section           
#hig7;h77#d7 is am5d$ by add+ at ! end !
 foll[+ new subp>agraph3  7,e7 ,special 
own]%ip rules ,= purposes ( det]m9+ !   
hold] ( /ock "u subp>agraphs 7,b7 &     
7,c7--  7i7 9 ! case ( any class ( /ock 

( ! qualifi$ inve/m5t entity :i* is     
regul>ly trad$ on an e/abli%$ securities
 m>ket 9 ! ,unit$ ,/ates1 a p]son hold+ 
less ?an #e p]c5t ( su* class ( /ock at 
all times dur+ ! te/+ p]iod %all be     
treat$ z a ,unit$ ,/ates p]son unless ! 
qualifi$ inve/m5t entity has actual k t 
su* p]son is n a ,unit$ ,/ates p]son1   
7ii7 any /ock 9 ! qualifi$ inve/m5t     
entity held by ano!r qualifi$ inve/m5t  
entity--  7,i7 any class ( /ock ( :i* is
 regul>ly trad$ on an e/abli%$          
securities m>ket1 or  7,,ii7 :i* is a   
regulat$ inve/m5t company :i* issues    
r$eemable securities 7)9 ! mean+ (      
section #b ( ! ,inve/m5t ,company ,act (
 #aidj71  %all be treat$ z held by a    
=eign p]son1 except t if su* o!r        
qualifi$ inve/m5t entity is dome/ically 
controll$ 7det]m9$ aft] application (   
?is subp>agraph71 su* /ock %all be      
treat$ z held by a ,unit$ ,/ates p]son1 
&  7iii7 any /ock 9 ! qualifi$ inve/m5t 
entity held by any o!r qualifi$ inve/m5t
 entity n describ$ 9 subclause 7,i7 or  

7,,ii7 ( clause 7ii7 %all only be treat$
 z held by a ,unit$ ,/ates p]son 9      
proportion to ! /ock ( su* o!r qualifi$ 
inve/m5t entity :i* is 7or is treat$ "u 
clause 7ii7 or 7iii7 z7 held by a ,unit$
 ,/ates p]son4  4  7,b7 ,con=m+ am5dm5t 
,! head+ = p>agraph 7#d7 ( section      
#hig7;h7 is am5d$ by ins]t+ & special   
rules aft] ,def9itions4  7#b7 ,te*nical 
am5dm5t ,clause 7ii7 ( section          
#hig7;h77#d77;,a7 is am5d$ by ins]t+ & =
 purposes ( det]m9+ :e!r a real e/ate   
inve/m5t tru/ is a dome/ically controll$
 qualifi$ inve/m5t entity "u ?is        
subsection aft] real e/ate inve/m5t     
tru/4  7c7 ,effective dates  7#a7 ,9    
g5]al ,! am5dm5ts made by subsection 7a7
 %all take effect on ! date ( enactm5t &
 %all apply to--  7,a7 any disposition  
on & aft] ! date ( ! enactm5t ( ?is     
,act1 &  7,b7 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#b7 ,det]m9ation (    

dome/ic control ,! am5dm5ts made by     
subsection 7b77#a7 %all take effect on !
 date ( ! enactm5t ( ?is ,act4  7#c7    
,te*nical am5dm5t ,! am5dm5t made by    
subsection 7b77#b7 %all take effect on  
,janu>y #a1 #bjae4  #c4 ,exception =    
int]e/s held by =eign retirem5t or      
p5sion funds  7a7 ,9 g5]al ,section     
#hig1 z am5d$ by section #b1 is am5d$ by
 add+ at ! end ! foll[+ new subsection3 
7l7 ,exception = int]e/s held by =eign  
p5sion funds  7#a7 ,9 g5]al ,?is section
 %all n apply to any ,unit$ ,/ates real 
prop]ty int]e/ held by--  7,a7 a        
qualifi$ =eign p5sion fund1 or  7,b7 any
 entity all ( ! int]e/s ( :i* are held  
by a qualifi$ =eign p5sion fund4  7#b7  
,qualifi$ =eign p5sion fund ,= purposes 
( ?is subsection1 ! t]m qualifi$ =eign  
p5sion fund means any tru/1 corporation1
 or o!r organization or arrangem5t--    
7,a7 :i* is creat$ or organiz$ "u ! law 
( a c\ntry o!r ?an ! ,unit$ ,/ates1     
7,b7 :i* is e/abli%$ to provide         
retirem5t or p5sion b5efits to          

p>ticipants or b5efici>ies t are curr5t 
or =m] employees 7or p]sons designat$ by
 su* employees7 ( "o or m employ]s 9    
consid]ation = s]vices r5d]$1  7,c7 :i* 
does n h a s+le p>ticipant or b5efici>y 
) a "r to m ?an five p]c5t ( its assets 
or income1  7,d7 :i* is subject to      
gov]nm5t regulation & provides annual   
in=mation report+ ab\t its b5efici>ies  
to ! relevant tax au?orities 9 ! c\ntry 
9 :i* x is e/abli%$ or op]ates1 &  7,e7 
) respect to :i*1 "u ! laws ( ! c\ntry 9
 :i* x is e/abli%$ or op]ates--  7i7    
contributions to su* tru/1 corporation1 
organization1 or arrangem5t :i* w\ld    
o!rwise be subject to tax "u su* laws   
are d$uctible or exclud$ f ! gross      
income ( su* entity or tax$ at a r$uc$  
rate1 or  7ii7 taxation ( any inve/m5t  
income ( su* tru/1 corporation1         
organization or arrangem5t is def]r$ or 
su* income is tax$ at a r$uc$ rate4     
7#c7 ,regulations ,! ,secret>y %all     
prescribe su* regulations z may be      
necess>y or appropriate to c>ry out !   

purposes ( ?is subsection4  4  7b7      
,exemption f )hold+ ,section            
#adde7;f77#c7 is am5d$ by /rik+ any     
p]son & all t foll[s & ins]t+ ! foll[+3 
any p]son o!r ?an-- 7,a7 a ,unit$ ,/ates
 p]son1 &  7,b7 except z o!rwise provid$
 by ! ,secret>y1 an entity ) respect to 
:i* section #hig does n apply by reason 
( subsection 7l7 !re(4  4  7c7          
,effective date ,! am5dm5ts made by ?is 
section %all apply to dispositions &    
di/ributions aft] ! date ( ! enactm5t ( 
?is ,act4