PUBLIC LAW 96-499—DEC. 5, 1980
94 STAT. 2683
"(B) NET UNITED STATES REAL PROPERTY GAIN.—For purposes of subparagraph (A), the term 'net United States real property gain' means the excess of— "(i) the aggregate of the gains for the taxable year from dispositions of United States real property interests, over "(ii) the aggregate of the losses for the taxable year from dispositions of such interests, "(b) LIMITATION ON LOSSES OF INDIVIDUALS.—In the case of an individual, a loss shall be taken into account under subsection (a) only to the extent such loss would be taken into account under section 165(c) (determined without regard to subsection (a) of this section). 26 USC 165. "(c) UNITED STATES REAL PROPERTY INTEREST.—For purposes of this section— "(1) UNITED STATES REAL PROPERTY INTEREST.—
"(A) IN GENERAL.—Except as provided in subparagraph (B), the term 'United States real property interest' means— "(i) an interest in real property (including an interest in a mine, well, or other natural deposit) located in the United States, and "(ii) any interest (other than an interest solely as a creditor) in any domestic corporation unless the taxpayer establishes (at such time and in such manner as the Secretary by regulations prescribes) that such corporation was at no time a United States real property holding corporation during the shorter of— "(I) the period after June 18, 1980, during which the taxpayer held such interest, or "(II) the 5-year period ending on the date of the disposition of such interest. "(B) EXCLUSION FOR INTEREST IN CERTAIN CORPORATIONS.—
The term 'United States real property interest' does not include any interest in a corporation if— "(i) as of the date of the disposition of such interest, such corporation did not hold any United States real property interests, and "(ii) all of the United States real property interests held by such corporation at any time during the shorter of the periods described in subparagraph (A)(ii)— "(I) were disposed of in transactions in which the full amount of the gain (if any) was recognized, or "(II) ceased to be United States real property interests by reason of the application of this subparagraph to 1 or more other corporations. "(2) UNITED STATES REAL PROPERTY HOLDING CORPORATION.—
The term 'United States real property holding corporation' means any corporation if— "(A) the fair market value of its United States real property interests equals or exceeds 50 percent of "(B) the fair market value of— "(i) its United States real property interests, "(ii) its interests in real property located outside the United States, plus "(iii) any other of its assets which are used or held for use in a trade or business. "(3) EXCEPTION FOR STOCK REGULARLY TRADED ON ESTABLISHED SECURITIES MARKETS.—If any class of stock of a corporation is
regularly traded on an established securities market, stock of
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