I 
111TH CONGRESS 
2D SESSION 
H. R. 4539 
To amend the Internal Revenue Code of 1986 to modify the treatment 
of foreign investments in United States real property, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 27, 2010 
Mr. CROWLEY (for himself, Ms. BEAN, and Mr. TIBERI) introduced the 
following bill; which was referred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to modify 
the treatment of foreign investments in United States 
real property, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Real Estate Revitaliza-
tion Act of 2010’’. 
SEC. 2. TREATMENT OF FOREIGN INVESTMENTS IN UNITED 
STATES REAL PROPERTY. 
(a) INTEREST IN DOMESTIC CORPORATION NOT A 
UNITED
STATES
REAL
PROPERTY
INTEREST.—Sub-
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‘‘(h) SPECIAL RULES
FOR CERTAIN INVESTMENT 
ENTITIES.—For purposes of this section— 
‘‘(1) LOOK-THROUGH OF DISTRIBUTIONS.—Any 
distribution by a qualified investment entity to a 
nonresident alien individual or a foreign corporation 
shall, to the extent attributable to gain from sales or 
exchanges by the qualified investment entity (includ-
ing as a result of sales or exchanges by a lower-tier 
qualified investment entity) of United States real 
property interests, be included in such foreign per-
son’s gross income as an ordinary dividend from the 
qualified investment entity. 
‘‘(2) LIQUIDATING
DISTRIBUTIONS.—In the 
event of a liquidating distribution, the lesser of— 
‘‘(A) gain recognized under section 331, or 
‘‘(B) the amount that would be treated as 
an ordinary dividend pursuant to paragraph 
(1), 
shall be treated as an ordinary dividend. 
‘‘(3) PARTNERSHIPS.—For purposes of this 
paragraph, a qualified investment entity shall be 
deemed to own its proportionate share of each of the 
assets of any partnership (as defined in section 
7701(a)(2)) in which the qualified investment entity 
has an interest as a partner. 
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‘‘(4) QUALIFIED
INVESTMENT
ENTITY.—The 
term ‘qualified investment entity’ means any real es-
tate investment trust and any regulated investment 
company.’’. 
(c) REPEAL OF THE ELECTION BY A FOREIGN COR-
PORATION TO BE TREATED AS A DOMESTIC CORPORA-
TION.—Section 897 of such Code is amended by striking 
subsection (i). 
(d) CONFORMING AMENDMENTS.— 
(1) Section 852(b)(3)(E) of such Code is 
amended by striking ‘‘to which section 897 does not 
apply by reason of the second sentence of section 
897(h)(1)’’ and inserting ‘‘described in section 
897(h)(1)’’. 
(2) Section 857(b)(3)(F) of such Code is 
amended by striking ‘‘In the case of a shareholder 
of a real estate investment trust to whom section 
897 does not apply by reason of the second sentence 
of section 897(h)(1)’’ and inserting ‘‘In the case of 
a distribution described in section 897(h)(1) to a 
shareholder of a real estate investment trust’’. 
(3) Section 871(k)(2)(E) of such Code is 
amended by striking ‘‘to which section 897 does not 
apply by reason of the second sentence of section 
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897(h)(1)’’ and inserting ‘‘described in section 
897(h)(1)’’. 
(4) Section 884(d)(2) of such Code is amended 
by striking subparagraph (C) and redesignating sub-
paragraphs (D) and (E) as subparagraphs (C) and 
(D), respectively. 
(5)(A) Section 1445(b) of such Code is amend-
ed by striking paragraphs (3), (6), and (8) and by 
redesignating paragraphs (4), (5), (7), and (9) as 
paragraphs (3), (4), (5), and (6), respectively. 
(B) Section 1445(d)(1)(A) of such Code is 
amended by striking ‘‘or a domestic corporation fur-
nishes the transferee an affidavit described in para-
graph (3) of subsection (b)’’. 
(C) Section 1445(e) of such Code is amended 
by striking paragraphs (3) and (6) and by redesig-
nating paragraphs (4), (5), and (7) as paragraphs 
(3), (4), and (5), respectively. 
(6) Paragraphs (1) and (2) of section 6039C(d) 
of such Code are amended to read as follows: 
‘‘(1) to the United States, in the case of any in-
terest in real property located in the United States, 
and 
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‘‘(2) to the Virgin Islands, in the case of any 
interest in real property located in the Virgin Is-
lands.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2009. 
Æ 
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