1006
26 USC 318.
26 USC 561.
PUBLIC LAW 86-779-SEPT. 14, 1960
[74 S T A T.
total combined voting power of all classes of stock entitled to vote, or 10 percent or more of the total number of shares of all classes of stock of such person; or " (B) in the case of any person which is not a corporation, an interest of 10 percent or more in the assets or net profits of such person; and "(8) any amount received or accrued, directly or indirectly, with I'espect to any real property, if the real estate investment trust furnishes or renders services to the tenants of such property, or manages or operates such property, other than through an independent contractor from whom the trust itself does not derive or receive any income. For purposes of this paragraph, the term 'independent contractor' means— " (A) a person who does not own, directly or indirectly, more than 35 percent of the shares, or certificates of beneficial interest, in the real estate investment trust, or " (B) a person, if a corporation, not more than 35 percent of the total combined voting power of whose stock (or 35 percent of the total shares of all classes of whose stock), or, if not a corporation, not more than 35 percent of the interest in whose assets or net profits is owned, directly or indirectly, by one or more persons owning 35 percent or more of the shares or certificates of beneficial interest in the trust. For purposes of paragraphs (2) and (3), the rules prescribed by sec|.'QJ^ 318(a) for determining the ownership of stock shall apply in determining the ownership of stock, assets, or net profits of any person; except that '10 percent' shall be substituted for '50 percent' in subparagraph (C) of section 318(a)(2). "SEC. 857. TAXATION OF REAL ESTATE INVESTMENT TRUSTS AND THEIR BENEFICIARIES. " (a) REQUIREMENTS ArPLiCAULE TO REAL ESTATE INVESTMENT TRUSTS.—The provisions of this part (other than subsection (d) of this section) shall not apply to a real estate investment trust for a taxable year unless— " (1) the deduction for dividends paid during the taxable year (j^g defined in section.5(51, but without regard to capital gains dividends) equals or exceeds 90 percent of its real estate investment trust taxable income for the taxable year (determined without regard to subsection (b)(2)(C)), and "(2) the real estate investment trust complies for such year with regulations prescribed by the Secretary or his delegate for the purpose of ascertaining the actual ownership of the outstanding shares, or certificates of beneficial interest, of such trust. "(b) METHOD or TAXAITON OF REAL ESTATE INVESTMENT TRUSTS AND HOLDKRS OF S H A K E S OR (yERTlFIOAl'ES OF BENEFICIAL INTEREST. "(1) IMPOSITION OF NORMAL TAX AND SURTAX ON REAL ESTATE
26 USC 11.
INVESTMENT TRUSTS.—There is hereby imposed for each taxable year on the real estate investment trust taxable income of every real estate investment trust a normal tax and surtax computed j^g provided in section 11, as though the real estate investment trilst taxable income were the taxable income referred to in section 11. For purposes of computing the normal tax under section 11, the taxable income and the dividends paid deduction
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