118 STAT. 1443 PUBLIC LAW 108–357—OCT. 22, 2004 of tax in case of failure to meet certain requirements) is amended by striking ‘‘90 percent’’ and inserting ‘‘95 percent’’. (f) SAVINGS PROVISIONS.— (1) RULES OF APPLICATION FOR FAILURE TO SATISFY SECTION 856(c)(4).—Section 856(c) (relating to definition of real estate investment trust) is amended by inserting after paragraph (6) the following new paragraph: ‘‘(7) RULES OF APPLICATION FOR FAILURE TO SATISFY PARA GRAPH (4).— ‘‘(A) DE MINIMIS FAILURE.—A corporation, trust, or association that fails to meet the requirements of para graph (4)(B)(iii) for a particular quarter shall nevertheless be considered to have satisfied the requirements of such paragraph for such quarter if— ‘‘(i) such failure is due to the ownership of assets the total value of which does not exceed the lesser of— ‘‘(I) 1 percent of the total value of the trust’s assets at the end of the quarter for which such measurement is done, and ‘‘(II) $10,000,000, and ‘‘(ii)(I) the corporation, trust, or association, fol lowing the identification of such failure, disposes of assets in order to meet the requirements of such para graph within 6 months after the last day of the quarter in which the corporation, trust or association’s identi fication of the failure to satisfy the requirements of such paragraph occurred or such other time period prescribed by the Secretary and in the manner pre scribed by the Secretary, or ‘‘(II) the requirements of such paragraph are other wise met within the time period specified in subclause (I). ‘‘(B) FAILURES EXCEEDING DE MINIMIS AMOUNT.—A cor poration, trust, or association that fails to meet the require ments of paragraph (4) for a particular quarter shall never theless be considered to have satisfied the requirements of such paragraph for such quarter if— ‘‘(i) such failure involves the ownership of assets the total value of which exceeds the de minimis standard described in subparagraph (A)(i) at the end of the quarter for which such measurement is done, ‘‘(ii) following the corporation, trust, or associa tion’s identification of the failure to satisfy the require ments of such paragraph for a particular quarter, a description of each asset that causes the corporation, trust, or association to fail to satisfy the requirements of such paragraph at the close of such quarter of any taxable year is set forth in a schedule for such quarter filed in accordance with regulations prescribed by the Secretary, ‘‘(iii) the failure to meet the requirements of such paragraph for a particular quarter is due to reasonable cause and not due to willful neglect, ‘‘(iv) the corporation, trust, or association pays a tax computed under subparagraph (C), and
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