PUBLIC LAW 94-455—OCT. 4, 1976
9 0 STAT. 1749
SEC. 1604. OTHER CHANGES IN LIMITATIONS AND REQUIREMENTS. (a)
INCREASE I N 9 0 - P E R C E N T GROSS INCOME REQUIREMENT TO 95
PERCENT.—Section 856(c)(2) (relating to limitations) is amended by 26 USC 856. striking out "90 percent of its gross income" and inserting in lieu thereof "95 percent (90 percent for taxable years beginning before January 1, 1980) of its gross income (excluding gross income from prohibited transactions)". (b) APPORTIONMENT OF R E N T A L INCOME AND CHARGES FOR CUSTOMARY SERVICES; C H A N G E I N DEFINITION OF INDEPENDENT CONTRACTOR.—
Subsection (d) of section 856 (defining rents from real property) is amended to read as follows: " (d) R E N T S F R O M R E A L PROPERTY D E F I N E D. — " (1) A M O U N T S INCLUDED.—For purposes of paragraph s (2) and
(3) of subsection (c), the term 'rents from real property' includes (subject to paragraph (2)) — " (A) rents from interests in real property, " (B) charges for services customarily furnished or rendered in connection with the rental of real property, whether or not such charges are separately stated, and " (C) rent attributable to personal property which is leased under, or in connection with, a lease of real property, b u t only if the rent attributable to such personal property for the taxable year does not exceed 15 percent of the total rent for the taxable year attributable to both the real and personal property leased under, o r in connection with, such lease. For purposes of subparagraph (C), with respect to each lease of real property, rent attributable to personal property for the taxable year is that amount which bears the same ratio to total rent for the taxable year as the average of the adjusted bases of the personal property a t the beginning and at the end of the taxable year bears to the average of the aggregate adjusted bases of both the real property and the personal property a t the beginning and at the end of such taxable year. " (2) A M O U N T S EXCLUDED.—For purposes of paragraph s (2) and
(3) of subsection (c), the term 'rents from real property' does not include— " (A) except as provided i n paragraph (4), any amount received or accrued, directly or indirectly, with respect to any real or personal property, if the determination of such amount depends in whole or in part on the income o r profits derived by any person from such property (except that any amount so received o r accrued shall not be excluded from the term 'rents from real property' solely by reason of being based on a fixed percentage or percentages of receipts or s a l e s); " (B) any amount received or accrued directly or indirectly from any person if the real estate investment t r u s t owns, directly or indirectly—
- '(i) i n the case of any person which is a corporation,
stock of such person possessing 10 percent o r more of the total combined voting power of all classes of stock entitled to vote, o r 10 percent or more of the total number of shares of all classes of stock of such person; or " ( i i) i n the case of any person which is not a corporation, an interest of 10 percent or more i n the assets or net profits of such person; and " (C) any amount received or accrued, directly or indirectly, with respect to any real or personal property if the real
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