PUBLIC LAW 94^55—OCT. 4, 1976
90 STAT. 1757
(C) Section 443(e)(6) (relating to cross references) is amended by striking out " 8 5 7 (b)(2)(D) " and inserting i n lieu thereof "857(b)(2)(C). (2) Subparagraph (B) of section 857(b)(2) (relating to real estate investment trust taxable income), as redesignated by paragraph (1) of this subsection, is amended by striking out "shall be computed without regard to capital gains dividends and". (3) Section 8 5 7 (b)(3)(C) (relating to definition of capital gain dividend) is amended by inserting after the second sentence thereof the following: " For purposes of this subparagraph, the net capital gain shall be deemed not to exceed the real estate investment trust taxable income (determined without regard to the deduction for dividends paid (as defined i n section 561) for the taxable year). " SEC. 1608. EFFECTIVE DATE FOR TITLE. (a) DEriciENCY DIVIDEND PROCEDURES.—The amendments made by section 1601 shall apply with respect to determinations (as defined in section 859(c) of the I n t e r n a l Revenue Code of 1954) occurring after the date of the enactment of this Act. I f the amendments made by section 1601 apply to a taxable year ending on or before the date of enactment of this Act: (1) the reference to section 857(b)(3)(A) (ii) i n sections 8 5 7 (b)(3)(C) and 8 5 9 (b)(1)(B) of such Code, as amended, shall be considered to be a reference to section 857(b)(3)(A) of such Code, as in effect immediately before the enactment of this Act, and (2) the reference to section 8 5 7 (b)(2)(B) i n section 859(a) of such Code, as amended, shall be considered to be a reference to section 857(b)(2)(C) of such Code, as in effect immediately before the enactment of this Act. (b) T R U S T N O T DISQUALIFIED I N CERTAIN CASES W H E R E INCOME
26 USC 443. 26 USC 857.
> •'{ •^*'"'^~ '.,,•' 26 USC 859 "o*®Ante, p. 1742.
26 USC 856
TESTS N O T M E T. — The amendment made by section 1602 shall apply to ° * ®
- taxable years of real estate investment trusts beginning after the date
of the enactment of this Act. I n addition, the amendments made by section 1602 shall apply to a taxable year of a real estate investment t r u s t beginning before the date of the enactment of this Act if, as the result of a determination (as defined in section 859(c) of the I n t e r n a l Revenue Code of 1954) with respect to such t r u s t occurring after the date of the enactment of this Act, such t r u s t for such taxable years does not meet the requirements of section 8 5 6 (c)(2) or section 856 (c)(3), or of both such sections, of such Code as i n effect for such taxable year. I n any case, the amendment made by section 1602(a) requiring a schedule to be attached to the income tax return of certain real estate investment trusts shall apply only to taxable years of such trusts beginning after the date of the enactment of this Act. I f the amendments made by section 1602 apply to a taxable year ending on or before the date of enactment of this Act, the reference to paragraph (2)(B) in section 857(b)(5) of such Code, as amended, shall be con- Ante, p. 1747. sidered to be a reference to paragraph (2)(C) of section 857(b) of such Code, as in effect immediately before the enactment of this Act. (c) ALTERATIVE T A X AND N"ET OPERATING Loss.—The amendments
made by sections 1606 and 1607 shall apply to taxable years ending after the date of the enactment of this Act, except that i n the case of a tax p a y e r which has a net operating loss (as defined i n section 172(c) of the I n t e r n a l Revenue CcKle of 1954) for any taxable year ending after the date of enactment of this Act for which the provisions of
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