74 S T A T. ]
PUBLIC LAW 8 6 - 7 7 9 - S E P T. 14, 1960
1009
"Subchapter M—Regulated Investment Companies and Real Estate Investment Trusts "Part I. Regulated investment companies. "Part II, Heal estate investment trusts. "Part I—Regulated Investment Companies"; (2) by striking out "this subchapter" in sections 852(a) and 855(c) and inserting in lieu thereof "this part "; and (3) by striking out "A capital gain dividend means" in section 852(b)(3)(C) and inserting in lieu thereof " For purposes of this part, a capital gain dividend is". (c) The table of subchapters for chapter 1 of such Code is amended by inserting "and real estate investment trusts" after "Regulated investment companies". (d) Section 11(d)(3) of such Code (relating to tax on corporations) is amended by inserting "and real estate investment trusts" after "regulated investment companies." (e) Section 34(c) of such Code (relating to credit for dividends received by individuals) is amended by striking out the word "or" at the end of paragraph (1), by striking out the period at the end of paragraph (2) and inserting in lieu thereof "; or", and by adding at the end thereof the following new paragraph: "(3) a real estate investment trust which, for the taxable year of the trust in which the dividend is paid, qualifies under part II of subchapter M (sec. 856 and following).' (f) Section 116(b) of such Code (relating to an exclusion for dividends received by individuals) is amended by striking out the word "or" at the end of paragraph (1), by striking out the period at the end of paragraph (2) and inserting in lieu thereof "; or", and by adding at the end thereof the following new paragraph: "(3) a real estate investment trust which, for the taxable year of the trust in which the dividend is paid, qualifies under part II of subchapter M (sec. 856 and following)." (g) Section 243(c) of such Code (relating to deduction for dividends received by corporations) is amended by adding at the end thereof the following new paragraph: " (3) Any dividend received from a real estate investment trust which, for the taxable year of the trust in which the dividend is paid, qualifies under part II of subchapter M (sec. 856 and following) shall not be treated as a dividend." (h) Section 318(b) of such Code (relating to constructive ownership of stock) is amended by striking out the word "and" at the end of paragraph (4), by striking out the period at the end of paragraph (5) and inserting in lieu thereof^'; and", and by adding at the end thereof the following new paragraph: "(6) section 856(d) (relating to definition of rents from real property in the case of real estate investment trusts)." (i) Section 443(d) of such Code (relating to computation of tax on change of annual accounting period) is amended by adding at the end thereof the following new paragraph; "(5) The taxable income of a real estate investment trust, see section 857(b)(2)(D)." (j) Section 1504(b)(6) of such Code (relating to consolidated returns) is amended by inserting "and real estate investment trusts" after "Kegulated investment companies". (k) The amendments made by this section shall apply with respect to taxable years of real estate investment trusts beginning after December 31, 1960. 48232 0-61-64
26 USC ss2, sss.
^^ "^^ "• 26 USC M.
26 USC iie.
^^ ^^ 24;i.
26 USC sis.
26 USC 443.
26 USC 1504.
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