,,ii ,cal5d> ,no4 #dh #aad? ,,congress  
#a/ ,session  ,s4 #iae ,report ,no4     
#aad-be ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ 
,,/ates  ,april #ad1 #bjae,mr4 ,hat*1 f 
! ,committee on ,f9ance1 report$ !      
foll[+ orig9al bill2 :i* 0 read twice & 
plac$ on ! cal5d>  ,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 ! am\nt ( ! 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 all su*       
int]e/s 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>agraph-- 7i7 ,9 g5]al  
,! 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*--  7,i7 holds an int]e/ 7o!r ?an an 
int]e/ solely z a cr$itor7 9 su*        
qualifi$ %>ehold]1 &  7,,ii7 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  7ii7 ,con/ructive own]%ip   
rules ,= purposes ( ?is subp>agraph1 !  
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 m ?an #aj p]c5t ( !     
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/ & cont9ues to be s eligible ev5 if 
su* p]son holds m ?an #aj p]c5t ( ! /ock
 ( su* real e/ate inve/m5t tru/1  7ii7  
:i*1 if su* p]son 7 a ,unit$ ,/ates     
p]son1 w\ld be classifi$ z a ,unit$     
,/ates real prop]ty hold+ corporation   
7det]m9$ )\t reg>d to p>agraph 7#b77 at 
any "t dur+ ! #e-ye> p]iod end+ on !    
date ( any disposition (1 or di/ribution
 ) respect to1 ! p]son's int]e/s 9 a    
real e/ate inve/m5t tru/1 or  7iii7 :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 ,increase 9 rate ( )hold+ ( 
tax on dispositions ( ,unit$ ,/ates real
 prop]ty int]e/s  7a7 ,9 g5]al          
,subsections 7a71 7e77#c71 7e77#d71 &   
7e77#e7 ( section #adde are ea* am5d$ by
 /rik+ #aj p]c5t & ins]t+ #ae p]c5t4    
7b7 ,exception = c]ta9 resid5ces        
,section #adde7;c7 is am5d$ by add+ at !
 end ! foll[+ new p>agraph3  7#d7 ,r$uc$
 rate ( )hold+ = resid5ce :]e am\nt     
realiz$ does n exce$ #a1jjj1jjj ,9 !    
case ( a disposition--  7,a7 ( prop]ty  
:i* is acquir$ by ! transf]ee = use by !
 transf]ee z a resid5ce1  7,b7 ) respect
 to :i* ! am\nt realiz$ = su* prop]ty   
does n exce$ #a1jjj1jjj1 &  7,c7 to :i* 
subsection 7b77#e7 does n apply1        
subsection 7a7 %all be appli$ by        
sub/itut+ #aj p]c5t = #ae p]c5t4  4  7c7
 ,effective date ,! am5dm5ts made by ?is
 section %all apply to dispositions aft]
 ! date :i* is #fj days aft] ! date ( ! 
enactm5t ( ?is ,act4  #d4 ,requir$      

notification ( /atus z ,unit$ ,/ates    
real prop]ty hold+ corporation  7a7     
,notification ( /atus z ,unit$ ,/ates   
real prop]ty hold+ corporation  7#a7 ,9 
g5]al ,subp>t ,a ( "p ,,iii ( sub*apt]  
,a ( *apt] #fa is am5d$ by ins]t+ be=e  
section #fjci;,c ! foll[+ new section3  
#fjci;,b4 ,notification ( /atus z ,unit$
 ,/ates real prop]ty hold+ corporation  
7a7 ,9 g5]al ,any corporation :i* is a  
,unit$ ,/ates real prop]ty hold+        
corporation %all make ! foll[+          
notifications3  7#a7 ,disclosure to !   
,secret>y ,n lat] ?an ! due date = its  
return ( tax 7includ+ ext5sions7 = !    
taxable ye>1 ! corporation %all disclose
 ! in=mation describ$ 9 subsection 7b7  
to ! ,secret>y 9 su* =m & mann] z !     
,secret>y may require4  7#b7 ,disclosure
 on payee /atem5ts ,! corporation %all  
include on any /atem5t requir$ to be    
made "u section #fjdb7;c7 ! in=mation   
describ$ 9 subsection 7b74  7#c7        
,disclosure to ! public ,! corporation  
%all disclose to ! public ! in=mation   

describ$ 9 subsection 7b7--  7,a7 9 any 
annual report made by su* corporation1  
or  7,b7 9 ! case ( a corporation :i*   
does n file an annual report = any ye>1 
on its website or ?r\gh su* o!r m$ia z  
det]m9$ appropriate by ! ,secret>y 9 !  
int]e/s ( tax adm9i/ration4  7b7        
,in=mation describ$ ,! in=mation        
describ$ 9 ?is subsection is-- 7#a7 a   
/atem5t t su* corporation is a ,unit$   
,/ates real prop]ty hold+ corporation1 &
  7#b7 su* o!r in=mation z may be       
requir$ by ! ,secret>y4  7c7 ,unit$     
,/ates real prop]ty hold+ corporation   
7#a7 ,9 g5]al ,= purposes ( ?is section1
 a corporation is a ,unit$ ,/ates real  
prop]ty hold+ corporation if--  7,a7 su*
 corporation meets ! requirem5ts (      
section #hig7;c77#b7 at any "t dur+ !   
applicable p]iod1 or  7,b7 any (fic] (  
su* corporation has actual k t su*      
corporation meets su* requirem5ts at any
 "t dur+ ! p]iod beg9n+ on ! fir/ day   
aft] ! end ( ! applicable p]iod & end+  
on ! date ! notification requir$ "u     

subsection 7a7 is made4  7#b7           
,applicable p]iod ,= purposes ( p>agraph
 7#a71 ! applicable p]iod is-- 7,a7 9 ! 
case ( any notice requir$ "u subsection 
7a77#a71 ! #e-ye> p]iod end+ on ! la/   
day ( ! taxable ye> = :i* a disclosure 0
 requir$ to be made "u su* subsection1  
7,b7 9 ! case ( any notice requir$ "u   
subsection 7a77#b71 ! #e-ye> p]iod end+ 
on ! la/ day ( ! cal5d> ye> = :i* a     
disclosure 0 requir$ to be made "u su*  
subsection1 &  7,c7 9 ! case ( any      
notice requir$ "u subsection 7a77#c71 ! 
#e-ye> p]iod end+ on ! la/ day ( ! ye> =
 :i* a disclosure 0 requir$ to be made  
"u su* subsection4  7d7 ,application to 
publicly trad$ p>tn]%ips ,"u regulations
 prescrib$ by ! ,secret>y1 rules simil> 
to ! rules ( subsection 7a7 %all apply  
to any publicly trad$ p>tn]%ip 7z def9$ 
9 section #ggjd7;b77 :i*--  7#a7 is n   
treat$ z a corporation "u section       
#ggjd7;a71 &  7#b7 w\ld be a ,unit$     
,/ates real prop]ty hold+ corporation if
 su* publicly trad$ p>tn]%ip 7 a        

corporation4  4  7#b7 ,cl]ical am5dm5t  
,! table ( sections = subp>t ,a ( "p    
,,iii ( sub*apt] ,a ( *apt] #fa is am5d$
 by ins]t+ be=e ! item relat+ to section
 #fjci;,c ! foll[+ new item3  ,sec4     
#fjci;,b4 ,notification ( /atus z ,unit$
 ,/ates real prop]ty hold+ corporation4 
4  7b7 ,notification ( dome/ic control  
,subp>agraph 7,b7 ( section #hig7;h77#d7
 is am5d$ by add+ at ! end ! foll[+ new 
s5t5ce3 ,not)/&+ ! prec$+ s5t5ce1 a     
qualifi$ inve/m5t entity %all n be      
treat$ z a dome/ically controll$        
qualifi$ inve/m5t entity = any p]iod    
unless su* entity makes a disclosure t  
su* entity is dome/ically controll$ on  
any annual report made by su* entity on 
or aft] ,janu>y #a1 #bjaf 7or1 9 ! case 
( an entity :i* does n file an annual   
report = ! ye>1 on its website or ?r\gh 
su* o!r m$ia z det]m9$ appropriate by ! 
,secret>y 9 ! int]e/s ( tax             
adm9i/ration744  7c7 ,p5alty = failure  
to make notification ( /atus  7#a7 ,9   
g5]al ,"p ,i ( sub*apt] ,b ( *apt] #fh  

is am5d$ by add+ at ! end ! foll[+ new  
section3  #fgbj;,d4 ,failure to make    
notification ( /atus z ,unit$ ,/ates    
real prop]ty hold+ company  7a7 ,9 g5]al
 ,any p]son requir$ to make a           
notification "u section #fjci;,b :o--   
7#a7 fails to disclose to ! ,secret>y ! 
in=mation requir$ "u section            
#fjci;,b7a77#a7 = any taxable ye>1  7#b7
 fails to sub/antially comply ) !       
requirem5ts ( section #fjci;,b7a77#b7 = 
any cal5d> ye>1 or  7#c7 fails to make !
 disclosure requir$ "u section          
#fjci;,b7a77#c7 = any ye>1  %all pay a  
p5alty ) respect to ea* su* failure 9 ! 
am\nt det]m9$ "u subsection 7b74  7b7   
,am\nt ( p5alty  7#a7 ,9 g5]al ,except z
 o!rwise provid$ 9 ?is subsection1 !    
am\nt ( ! p5alty "u ?is subsection %all 
be #a1ejj1jjj4  7#b7 ,l[] p5alty =      
p]sons ) gross receipts ( n m ?an       
#e1jjj1jjj  7,a7 ,9 g5]al ,9 ! case ( a 
p]son :o meets ! gross receipts te/ "u  
subp>agraph 7,b71 ! am\nt ( ! p5alty "u 
?is subsection %all be #ejj1jjj4  7,b7  

,gross receipts te/  7i7 ,9 g5]al ,a    
p]son meets ! gross receipts te/ ( ?is  
subp>agraph = any cal5d> ye> if ! av]age
 annual gross receipts ( su* p]son = !  
mo/ rec5t #e taxable ye>s end+ be=e su* 
cal5d> ye> d n exce$ #e1jjj1jjj4  7ii7  
,c]ta9 rules made applicable ,= purposes
 ( clause 7i71 rules simil> to ! rules (
 p>agraphs 7#b7 & 7#c7 ( section        
#ddh7;c7 %all apply4  7#c7 ,high] p5alty
 = p]sons ) l>ge ,unit$ ,/ates real     
prop]ty int]e/s  7,a7 ,9 g5]al ,9 ! case
 ( a p]son describ$ 9 subp>agraph 7,c71 
! am\nt ( ! p5alty "u ?is subsection    
%all be #e1jjj1jjj4  7,b7 ,int5tional   
disreg>d ,if a failure is due to        
int5tional disreg>d1 subp>agraph 7,a7   
%all be appli$ by sub/itut+ #aj1jjj1jjj 
= #e1jjj1jjj4  7,c7 ,p]son describ$  7i7
 ,9 g5]al ,a p]son is describ$ 9 ?is    
subp>agraph if su* p]son has ,unit$     
,/ates real prop]ty int]e/s 7z def9$ 9  
section #hig7;c77 ) a gross fair m>ket  
value ( #a1jjj1jjj1jjj or m at any "t   
dur+ ! applicable p]iod 7z def9$ 9      

section #fjci;,b7b77#b774  7ii7         
,aggregation rules ,= purposes ( ?is    
p>agraph1 rules simil> to ! rules (     
p>agraph 7#b7 ( section #ddh7;c7 %all   
apply4  7c7 ,coord9ation ) p5alty =     
failure to file correct payee /atem5ts  
,no p5alty %all be impos$ "u section    
#fgbb ) respect to any failure to comply
 ) ! requirem5ts ( section              
#fjci;,b7a77#b7 if a p5alty is impos$ "u
 subsection 7a77#b7 ) respect to su*    
failure4  7d7 ,reasonable cause waiv]   
,no p5alty %all be impos$ "u ?is section
 ) respect to any failure if x is %[n t 
su* failure is due to reasonable cause &
 n to willful neglect4  7e7 ,inflation  
adju/m5t  7#a7 ,9 g5]al ,9 ! case ( any 
failure relat+ to a notice requir$ to be
 made 9 a cal5d> ye> beg9n+ aft] #bjaf1 
ea* ( ! doll> am\nts "u subsection 7b7  
%all be increas$ by su* doll> am\nt     
multipli$ by ! co/-(-liv+ adju/m5t      
det]m9$ "u section #a7;f77#c71 det]m9$  
by sub/itut+ cal5d> ye> #bjae = cal5d>  
ye> #aiib 9 subp>agraph 7,b7 !re(4  7#b7

 ,r\nd+ ,if any am\nt adju/$ "u p>agraph
 7#a7 is n a multiple ( #aj1jjj1 su*    
am\nt %all be r\nd$ to ! next l[e/      
multiple ( #aj1jjj4  4  7#b7 ,cl]ical   
am5dm5t ,! table ( sections = "p ,i (   
sub*apt] ,b ( *apt] #fh is am5d$ by add+
 at ! end ! foll[+ new item3  ,sec4     
#fgbj;,d4 ,failure to make notification 
( /atus z ,unit$ ,/ates real prop]ty    
hold+ company4  4  7d7 ,effective dates 
7#a7 ,notification ,! am5dm5ts made by  
subsections 7a7 & 7b7 %all take effect  
on ,janu>y #a1 #bjaf4  7#b7 ,p5alties ,!
 am5dm5ts made by subsection 7c7 %all   
apply to notifications requir$ to be    
made on or aft] ,janu>y #a1 #bjaf4  #e4 
,requir$ )hold+ by brok]s on sales by   
%>ehold]s own+ a m ?an #e p]c5t int]e/  
7a7 ,9 g5]al ,section #adde7;e7 is am5d$
 by r$esignat+ p>agraph 7#g7 z p>agraph 
7#h7 & by ins]t+ aft] p>agraph 7#f7 !   
foll[+ new p>agraph3  7#g7 ,brok] )hold+
 obligation on dispositions ( c]ta9     
int]e/s 9 ,unit$ ,/ates real prop]ty    
hold+ corporations & publicly trad$     

p>tn]%ips  7,a7 ,9 g5]al ,9 ! case ( any
 disposition ( /ock ( a ,unit$ ,/ates   
real prop]ty hold+ corporation by a     
=eign p]son 9 :i* ! disposition is made 
?r\gh a brok] 7z def9$ 9 section        
#fjde7;c771 su* brok] %all be requir$ to
 d$uct & )hold a tax equal to #ae p]c5t 
( ! am\nt realiz$ on ! disposition4     
7,b7 ,exceptions  7i7 ,am\nts )held by  
transf]ee ,subp>agraph 7,a7 %all n apply
 to any disposition if-- 7,i7 !         
transf]ee is requir$ to d$uct & )hold   
tax "u subsection 7a71 &  7,,ii7 !      
transf]ee furni%es to ! brok] an        
affidavit1 "u p5alty ( p]jury1 t !      
transf]ee has d$uct$ & )held su* tax4   
7ii7 ,int]e/s regul>ly trad$ on an      
e/abli%$ securities m>ket ,subp>agraph  
7,a7 %all n apply to any disposition (  
any class ( /ock ( a ,unit$ ,/ates real 
prop]ty hold+ corporation :i* is        
regul>ly trad$ on an e/abli%$ securities
 m>ket if ! transf]or1 imm$iately prior 
to ! disposition1 holds #e p]c5t 7#aj   
p]c5t 9 ! case ( a real e/ate inve/m5t  

tru/7 or less ( su* class ( /ock        
7det]m9$ "u ! rules ( section           
#hig7;c77#f77;,c774  7iii7 ,dome/ically 
controll$ qualifi$ inve/m5t entities &  
real e/ate inve/m5t tru/s ,subp>agraph  
7,a7 %all n apply to dispositions ( /ock
 (-- 7,i7 any dome/ically controll$     
qualifi$ inve/m5t entity 7z def9$ 9     
section #hig7;h77#d771 or  7,,ii7 any   
real e/ate inve/m5t tru/ to ! ext5t t   
su* /ock is n treat$ z a ,unit$ ,/ates  
real prop]ty int]e/ pursuant to section 
#hig7k77#b74  7iv7 ,int]e/s 9 c]ta9     
corporations ,subp>agraph 7,a7 %all n   
apply to any disposition ( /ock 9 a     
,unit$ ,/ates real prop]ty hold+        
corporation if su* /ock is n treat$ z a 
,unit$ ,/ates real prop]ty int]e/ by    
reason ( section #hig7;c77#a77;,b74  7v7
 ,lack ( brok] k  7,i7 ,9 g5]al         
,subp>agraph 7,a7 %all n apply if !     
brok] _h no k1 & reasonably c\ld n h be5
 expect$ to h k1 t ! disposition 0 (    
/ock 9 a ,unit$ ,/ates real prop]ty     
hold+ corporation4  7,,ii7 ,special rule

 ,= purposes ( subclause 7,i71 a brok]  
may rely on public /atem5ts made by a   
public company1 includ+ /atem5ts relat$ 
to ! /atus ( ! company z a ,unit$ ,/ates
 real prop]ty hold+ corporation or z a  
dome/ically controll$ qualifi$ inve/m5t 
entity4  7,c7 ,application to publicly  
trad$ p>tn]%ips ,"u regulations         
prescrib$ by ! ,secret>y1 rules simil>  
to ! rules ( subp>agraphs 7,a7 & 7,b7   
%all apply to ! disposition ?r\gh a     
brok] ( any int]e/ 9 a publicly trad$   
p>tn]%ip 7z def9$ 9 section #ggjd7;b77  
:i*--  7i7 is n treat$ z a corporation  
"u section #ggjd7;a71 &  7ii7 w\ld be a 
,unit$ ,/ates real prop]ty hold+        
corporation if su* publicly trad$       
p>tn]%ip 7 a corporation4  7,d7 ,unit$  
,/ates real prop]ty hold+ corporation ,=
 purposes ( ?is p>agraph1 ! t]m ,unit$  
,/ates real prop]ty hold+ corporation   
means any corporation :i* 0 a ,unit$    
,/ates real prop]ty hold+ corporation 7z
 def9$ 9 section #hig7;c77#b77 at any "t
 dur+ ! #e-ye> p]iod end+ on ! date ( ! 

disposition ref]r$ to 9 subp>agraph     
7,a74  4  7b7 ,con=m+ am5dm5t ,section  
#adde7;b77#f7 is am5d$ by /rik+ ,?is    
p>agraph & ins]t+ ,except z provid$ 9   
subsection 7e77#g71 ?is p>agraph4  7c7  
,effective date ,! am5dm5ts made by ?is 
section %all apply to dispositions aft] 
,decemb] #ca1 #bjae4  #f4 ,int]e/s 9    
,r,i,cs & ,r,e,i,ts n exclud$ f         
def9ition ( ,unit$ ,/ates real prop]ty  
int]e/s  7a7 ,9 g5]al ,section          
#hig7;c77#a77;,b7 is am5d$ by /rik+ & at
 ! end ( clause 7i71 by /rik+ ! p]iod at
 ! end ( clause 7ii77,,ii7 & ins]t+ 1 &1
 & by add+ at ! end ! foll[+ new clause3
  7iii7 nei!r su* corporation nor any   
pr$ecessor ( su* corporation 0 a        
regulat$ inve/m5t company or a real     
e/ate inve/m5t tru/ at any "t dur+ !    
%ort] ( ! p]iods describ$ 9 subp>agraph 
7,a77ii74  4  7b7 ,effective date ,!    
am5dm5t made by ?is section %all apply  
to dispositions on or aft] ! date ( !   
enactm5t ( ?is ,act4  #g4 ,divid5ds     
d]iv$ f ,r,i,cs & ,r,e,i,ts ineligible =

 d$uction = ,unit$ ,/ates s\rce portion 
( divid5ds f c]ta9 =eign corporations   
7a7 ,9 g5]al ,section #bde7;a7 is am5d$ 
by add+ at ! end ! foll[+ new p>agraph3 
7#ab7 ,divid5ds d]iv$ f ,r,i,cs &       
,r,e,i,ts ineligible = d$uction         
,regulat$ inve/m5t companies & real     
e/ate inve/m5t tru/s %all n be treat$ z 
dome/ic corporations = purposes (       
p>agraph 7#e77;,b74  4  7b7 ,effective  
date ,! am5dm5t made by ?is section %all
 apply to divid5ds receiv$ f regulat$   
inve/m5t companies & real e/ate inve/m5t
 tru/s on or aft] ! date ( ! enactm5t ( 
?is ,act4  7c7 ,no inf]5ce ,no?+ conta9$
 9 ?is section or ! am5dm5ts made by ?is
 section %all be con/ru$ to create any  
inf]5ce ) respect to ! prop] treatm5t "u
 section #bde ( ! ,int]nal ,rev5ue ,code
 ( #aihf ( divid5ds receiv$ f regulat$  
inve/m5t companies or real e/ate        
inve/m5t tru/s be=e ! date ( ! enactm5t 
( ?is ,act4  #h4 ,increase 9 cont9u\s   
levy  7a7 ,9 g5]al ,p>agraph 7#c7 (     
section #fcca7;h7 ( ! ,int]nal ,rev5ue  

,code ( #aihf is am5d$ by /rik+ #cj     
p]c5t & ins]t+ #ce p]c5t4  7b7          
,effective date ,! am5dm5t made by ?is  
section %all apply to paym5ts made aft] 
#ahj days aft] ! date ( ! enactm5t ( ?is
 ,act4  ,april #ad1 #bjae,read twice &  
plac$ on ! cal5d>