118 STAT. 1185 PUBLIC LAW 108–311—OCT. 4, 2004 ‘‘(5) QUALIFIED DIVIDEND INCOME.—For purposes of this subsection, the term ‘qualified dividend income’ has the meaning given such term by section 1(h)(11)(B).’’. (E) Paragraph (2) of section 857(c) is amended to read as follows: ‘‘(2) SECTION (1)(h)(11).— ‘‘(A) IN GENERAL.—In any case in which— ‘‘(i) a dividend is received from a real estate invest ment trust (other than a capital gain dividend), and ‘‘(ii) such trust meets the requirements of section 856(a) for the taxable year during which it paid such dividend, then, in computing qualified dividend income, there shall be taken into account only that portion of such dividend designated by the real estate investment trust. ‘‘(B) LIMITATION.—The aggregate amount which may be designated as qualified dividend income under subpara graph (A) shall not exceed the sum of— ‘‘(i) the qualified dividend income of the trust for the taxable year, ‘‘(ii) the excess of— ‘‘(I) the sum of the real estate investment trust taxable income computed under section 857(b)(2) for the preceding taxable year and the income subject to tax by reason of the application of the regulations under section 337(d) for such preceding taxable year, over ‘‘(II) the sum of the taxes imposed on the trust for such preceding taxable year under section 857(b)(1) and by reason of the application of such regulations, and ‘‘(iii) the amount of any earnings and profits which were distributed by the trust for such taxable year and accumulated in a taxable year with respect to which this part did not apply. ‘‘(C) NOTICE TO SHAREHOLDERS.—The amount of any distribution by a real estate investment trust which may be taken into account as qualified dividend income shall not exceed the amount so designated by the trust in a written notice to its shareholders mailed not later than 60 days after the close of its taxable year. ‘‘(D) QUALIFIED DIVIDEND INCOME.—For purposes of this paragraph, the term ‘qualified dividend income’ has the meaning given such term by section 1(h)(11)(B).’’. (F) With respect to any taxable year of a regulated invest ment company or real estate investment trust ending on or before November 30, 2003, the period for providing notice of the qualified dividend amount to shareholders under sections 854(b)(2) and 857(c)(2)(C) of the Internal Revenue Code of 1986, as amended by this section, shall not expire before the date on which the statement under section 6042(c) of such Code is required to be furnished with respect to the last calendar year beginning in such taxable year. (6) Paragraph (2) of section 302(f) of the Jobs and Growth Tax Relief Reconciliation Act of 2003 is amended to read as follows: 26 USC 1 note. 26 USC 854 note. Deadline.
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