A bill to amend the Internal Revenue Code of 1986 to modify the rules for constructive ownership with respect to real estate investment trusts.

Bill: 117-s-2715
Sponsor: full_name: Sen. Menendez, Robert [D-NJ]
Introduced: 2021-09-13
Policy area: Taxation
Latest action: action_date: 2021-09-13
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2021-09-13
action_desc: Introduced in Senate
text: <p>This bill modifies rules relating to the constructive ownership of assets in a real estate investment trust.</p>

tv_txt: II 117th CONGRESS 1st Session S. 2715 IN THE SENATE OF THE UNITED STATES September 13, 2021 Mr. Menendez (for himself and Mr. Young ) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to modify the rules for constructive ownership with respect to real estate investment trusts.

1. Modification of REIT constructive ownership rules (a) In general Section 856(d)(5) of the Internal Revenue Code of 1986 is amended by striking and at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting , and , and by adding at the end the following: (C) except as otherwise provided by the Secretary, stock, assets, and net profits constructively owned by a partnership, estate, trust, or corporation by reason of the application of section 318(a)(3) (after application of subparagraphs (A) and (B)) shall not be considered as owned by it for purposes of again applying such section in order to make another person the constructive owner of such stock, assets, or net profits. Subparagraph (C) shall not prevent any person from being the constructive owner of stock, assets, or net profits of any person as the result of any other application of section 318(a) (as modified by this paragraph). . (b) Effective date The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act. (c) No inference Nothing in this Act or the amendments made by this Act shall be construed to create any inference with respect to the proper application of section 318 of the Internal Revenue Code of 1986 to cases other than cases to which such amendments apply.