1.This Act may be cited as the
REIT Investment Diversification and
Empowerment Act of 2007
.
2.Except as otherwise
expressly provided, whenever in the Act an amendment or repeal is expressed in
terms of an amendment to, or repeal of, a section or other provision, the
reference shall be considered to be made to a section or other provision of the
Internal Revenue Code of 1986.
<enum>I</enum><header>Foreign currency
and other qualified activities</header>
<section id="H2818861C6EAB4ED4858E87840888D190"><enum>101.</enum><header>Revisions to
REIT income tests</header>
<subsection id="HBA3A3A299A45416D95862CFA0576AC00"><enum>(a)</enum><header>Addition of
permissible income categories</header><text display-inline="yes-display-inline">Section 856(c) (relating to limitations) is
amended—</text>
<paragraph id="HD25D9165CD1046DB0015D4C772551F9C"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>and</quote> at the end
of paragraph (2)(G) and by inserting after paragraph (2)(H) the following new
subparagraphs:</text>
<quoted-block display-inline="no-display-inline" id="HCD94D54E8ECB4F29A4A4134CD015D959" style="OLC">
<subparagraph id="H5EA681EEAA8D450BB53F3C90C48DBA9C"><enum>(I)</enum><text display-inline="yes-display-inline">passive foreign exchange gains; and</text>
</subparagraph><subparagraph id="H11FBE3B2977745C7B031F3E7A73B5DF3"><enum>(J)</enum><text display-inline="yes-display-inline">any other item of income or gain as
determined by the Secretary;</text>
</subparagraph><after-quoted-block>,
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="H549C1779105443E1B99FA846200081F0"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>and</quote> at the end
of paragraphs (3)(H) and (3)(I) and by inserting after paragraph (3)(I) the
following new subparagraphs:</text>
<quoted-block display-inline="no-display-inline" id="HCE296BAEDFFF43138C3D76E8A851AD92" style="OLC">
<subparagraph id="H413F8EA547EA434C9B6BB775FBEA5D9B"><enum>(J)</enum><text display-inline="yes-display-inline">real estate foreign exchange gains;
and</text>
</subparagraph><subparagraph id="H2CF76060FE734988B9AB5365A511E93E"><enum>(K)</enum><text display-inline="yes-display-inline">any other item of income or gain as
determined by the Secretary;
and</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H241659169DCD41A995AF8306B60573B"><enum>(b)</enum><header>Rules regarding
foreign currency transactions</header><text display-inline="yes-display-inline">Section 856 (defining real estate
investment trust) is amended by adding at the end the following new
subsection:</text>
<quoted-block display-inline="no-display-inline" id="HFBD04D8979E04AADB0E06EE75276900" style="OLC">
<subsection id="H9890FA5492884D3983479F89C5223CFA"><enum>(n)</enum><header>Rules regarding
foreign currency transactions</header><text display-inline="yes-display-inline">With respect to any taxable year—</text>
<paragraph id="H0496723FDD69492CBAC94BCBFDDF4CB"><enum>(1)</enum><header>Real estate
foreign exchange gains</header><text display-inline="yes-display-inline">For
purposes of subsection (c)(3)(J), the term <term>real estate foreign exchange
gains</term> means—</text>
<subparagraph id="HA3F8101FB91440FABBBDE3521600527E"><enum>(A)</enum><text display-inline="yes-display-inline">foreign currency gains (as defined in
section 988(b)(1)) which are attributable to—</text>
<clause id="HB228638E1B17461B84249F94D3B928D0"><enum>(i)</enum><text display-inline="yes-display-inline">any item described in subsection (c)(3)
(other than in subparagraph (J) thereof),</text>
</clause><clause id="HBE7A142532FE45CEA340288384A775A1"><enum>(ii)</enum><text display-inline="yes-display-inline">the acquisition or ownership of obligations
secured by mortgages on real property or on interests in real property (other
than foreign currency gains attributable to any item described in clause (i)),
or</text>
</clause><clause id="HD6F6AB4071CE4373BA1D4BDAC806B402"><enum>(iii)</enum><text display-inline="yes-display-inline">becoming or being the obligor under
obligations secured by mortgages on real property or on interests in real
property (other than foreign currency gains attributable to any item described
in clause (i)),</text>
</clause></subparagraph><subparagraph id="HB15F44ADE8804F369326E5CFA600B5EF"><enum>(B)</enum><text display-inline="yes-display-inline">gains described in section 987 attributable
to a qualified business unit (as defined by section 989) of the real estate
investment trust, but only if such qualified business unit meets the
requirements under—</text>
<clause id="H3F162F7188724231A77DD754B9B6A1A8"><enum>(i)</enum><text display-inline="yes-display-inline">subsection (c)(3) (without regard to
subparagraph (J) thereof) for the taxable year, and</text>
</clause><clause id="HB8874AE4083947339135124FE896A958"><enum>(ii)</enum><text display-inline="yes-display-inline">subsection (c)(4)(A) at the close of each
quarter that the real estate investment trust has directly or indirectly held
the qualified business unit, and</text>
</clause></subparagraph><subparagraph id="HA4099D20364442B595A1541E61B042F8"><enum>(C)</enum><text display-inline="yes-display-inline">any other foreign currency gains as
determined by the Secretary.</text>
</subparagraph></paragraph><paragraph id="H20B0F83EBE7741E9ADCE5167FF40A5C0"><enum>(2)</enum><header>Passive foreign
exchange gains</header><text display-inline="yes-display-inline">For purposes
of subsection (c)(2)(I), the term <term>passive foreign exchange gains</term>
means—</text>
<subparagraph id="H8D615B94653E4F65B082FDE7FF8749E9"><enum>(A)</enum><text display-inline="yes-display-inline">real estate foreign exchange gains,</text>
</subparagraph><subparagraph id="H057F8BB632B04C9C8B167650F426A811"><enum>(B)</enum><text display-inline="yes-display-inline">foreign currency gains (as defined in
section 988(b)(1)) which are not described in subparagraph (A) and which are
attributable to any item described in subsection (c)(2) (other than in
subparagraph (I) thereof), and</text>
</subparagraph><subparagraph id="H01D80229F0374DF5BC655FE961A09769"><enum>(C)</enum><text display-inline="yes-display-inline">any other foreign currency gains as
determined by the
Secretary.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HBF618B4C11F04015949C96FB0010D54"><enum>(c)</enum><header>Addition to REIT
hedging rule</header><text display-inline="yes-display-inline">Subparagraph (G)
of section 856(c)(5) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H67EDD4C8D3004E0200895F04E7F0E476" style="OLC">
<subparagraph id="HFF1F175662EF4933BCD4528C906EF75D"><enum>(G)</enum><header>Treatment of
certain hedging instruments</header><text display-inline="yes-display-inline">Except to the extent as determined by the
Secretary—</text>
<clause id="H5549A1F217004A50B280029F9967E8A1"><enum>(i)</enum><text display-inline="yes-display-inline">any income of a real estate investment
trust from a hedging transaction (as defined in clause (ii) or (iii) of section
1221(b)(2)(A)) which is clearly identified pursuant to section 1221(a)(7),
including gain from the sale or disposition of such a transaction, shall not
constitute gross income under paragraphs (2) and (3) to the extent that the
transaction hedges any indebtedness incurred or to be incurred by the trust to
acquire or carry real estate assets, and</text>
</clause><clause id="H39973D902E5B44F69CCAD49489CEAB58"><enum>(ii)</enum><text display-inline="yes-display-inline">any income of a real estate investment
trust from a transaction entered into by the trust primarily to manage risk of
currency fluctuations with respect to any item described in paragraph (2) or
(3), including gain from the termination of such a transaction, shall not
constitute gross income under paragraphs (2) and (3), but only if such
transaction is clearly identified as such before the close of the day on which
it was acquired, originated, or entered into (or such other time as the
Secretary may
prescribe).</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HF0C1D62F82B94A05BA45712309870482"><enum>(d)</enum><header>Authority to
exclude items of income from REIT income tests</header><text display-inline="yes-display-inline">Section 856(c)(5) is amended by adding at
the end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H4547A1AED8294D0492F41C73D0486403" style="OLC">
<subparagraph id="HE5474ACA519A47EC92A40111A1B699A0"><enum>(H)</enum><header>Secretarial
authority to exclude other items of income</header><text display-inline="yes-display-inline">The Secretary is authorized to determine
whether any item of income or gain which does not otherwise qualify under
paragraph (2) or (3) may be considered as not constituting gross income solely
for purposes of this
part.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="H83499017D26949BDB30009F8F92CB00"><enum>102.</enum><header>Revisions to
REIT asset tests</header>
<subsection id="H9D58CDF20C454A01B3EDB238BF008077"><enum>(a)</enum><header>Clarification of
valuation test</header><text display-inline="yes-display-inline">The first
sentence in the matter following section 856(c)(4)(B)(iii)(III) is amended by
inserting <quote>(including a discrepancy caused solely by the change in the
foreign currency exchange rate used to value a foreign asset)</quote> after
<quote>such requirements</quote>.</text>
</subsection><subsection id="H908561D56D0C4DEB9B023FF1E19918B7"><enum>(b)</enum><header>Clarification of
permissible asset category</header><text display-inline="yes-display-inline">Section 856(c)(5), as amended by section
101(d), is amended by adding at the end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H6241ABEB5B6647F3AFFAFF3E705DC1CA" style="OLC">
<subparagraph id="H0EA475DF35E44F44842008704D18F1DA"><enum>(I)</enum><header>Cash</header><text display-inline="yes-display-inline">The term <term>cash</term> includes foreign
currency if the real estate investment trust or its qualified business unit (as
defined in section 989) uses such foreign currency as its functional currency
(as defined in section
985(b)).</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="H9B11AA72481745D6984242AC543F7009"><enum>103.</enum><header>Conforming
foreign currency revisions</header>
<subsection id="H52B83A0CA83540CF97B8224FBC2B29DF"><enum>(a)</enum><header>Net income from
foreclosure property</header><text display-inline="yes-display-inline">Clause
(i) of section 857(b)(4)(B) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HB6F905C344D8403596061871722B7151" style="OLC">
<clause id="H01A0D5CA2E46462A92D7C251F2F2CD22"><enum>(i)</enum><text display-inline="yes-display-inline">gain (including any foreign currency gain,
as defined in section 988(b)(1)) from the sale or other disposition of
foreclosure property described in section 1221(a)(1) and the gross income for
the taxable year derived from foreclosure property (as defined in section
856(e)), but only to the extent such gross income is not described in (or, in
the case of foreign currency gain, not attributable to gross income described
in) section 856(c)(3) other than subparagraph (F) thereof,
over</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H69C2449E087B4018B50067997F64AB5B"><enum>(b)</enum><header>Net income from
prohibited transactions</header><text display-inline="yes-display-inline">Clause (i) of section 857(b)(6)(B) is
amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HC3E8E2EFEC3E423F80086B69139837FE" style="OLC">
<clause id="H6033331782944B7DB27024FB594FD276"><enum>(i)</enum><text display-inline="yes-display-inline">the term <term>net income derived from
prohibited transactions</term> means the excess of the gain (including any
foreign currency gain, as defined in section 988(b)(1)) from prohibited
transactions over the deductions (including any foreign currency loss, as
defined in section 988(b)(2)) allowed by this chapter which are directly
connected with prohibited
transactions;</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><enum>II</enum><header>Taxable reit
subsidiaries</header>
<section id="HDEF7E9B2E0E147B99EED98180227BA87"><enum>201.</enum><header>Conforming
taxable REIT subsidiary asset test</header><text display-inline="no-display-inline">Section 856(c)(4)(B)(ii) is amended by
striking <quote>20 percent</quote> and inserting <quote>25
percent</quote>.</text>
</section><enum>III</enum><header>Dealer
sales</header>
<section id="HCEF8F9F688D6472E9179230857068D07"><enum>301.</enum><header>Holding period
under safe harbor</header><text display-inline="no-display-inline">Section
857(b)(6) (relating to income from prohibited transactions) is amended—</text>
<paragraph id="H669BC4808C2A424C00403900EC9FC2F7"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>4 years</quote> in
subparagraphs (C)(i), (C)(iv), and (D)(i) and inserting <quote>2
years</quote>,</text>
</paragraph><paragraph id="H2EE1686A5CFA49ABA3B4AD1CF2F93287"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>4-year period</quote> in
subparagraphs (C)(ii), (D)(ii), and (D)(iii) and inserting <quote>2-year
period</quote>, and</text>
</paragraph><paragraph id="H95CDE2C706134D659E092E42ED4E2C4"><enum>(3)</enum><text display-inline="yes-display-inline">by striking <quote>real estate
asset</quote>and all that follows through <quote>if</quote> in the matter
preceding clause (i) of subparagraphs (C) and (D), respectively, and inserting
<quote>real estate asset (as defined in section 856(c)(5)(B)) and which is
described in section 1221(a)(1) if</quote>.</text>
</paragraph></section><section id="H33C56AA3A6E248998D9E25CA748234F2"><enum>302.</enum><header>Determining
value of sales under safe harbor</header><text display-inline="no-display-inline">Section 857(b)(6) is amended—</text>
<paragraph id="id613F873BD3974386AF499CBFC1E3EB8F"><enum>(1)</enum><text display-inline="yes-display-inline">by striking the semicolon at the end of
subparagraph (C)(iii) and inserting <quote>, or (III) the fair market value of
property (other than sales of foreclosure property or sales to which section
1033 applies) sold during the taxable year does not exceed 10 percent of the
fair market value of all of the assets of the trust as of the beginning of the
taxable year;</quote>, and</text>
</paragraph><paragraph id="id0A25FCE8803040329198A192747E08BE"><enum>(2)</enum><text display-inline="yes-display-inline">by adding <quote>or</quote> at the end of
subclause (II) of subparagraph (D)(iv) and by adding at the end of such
subparagraph the following new subclause:</text>
<quoted-block display-inline="no-display-inline" id="id145068DF281A445E821EF807E0696427" style="OLC">
<subclause id="idE2CF61599F46428B91B3751EDACC6207" indent="up1"><enum>(III)</enum><text>the fair market value of property
(other than sales of foreclosure property or sales to which section 1033
applies) sold during the taxable year does not exceed 10 percent of the fair
market value of all of the assets of the trust as of the beginning of the
taxable
year,</text>
</subclause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><enum>IV</enum><header>Health
care reits</header>
<section id="H26C3AB1ADC09498A8F14064C5773992B"><enum>401.</enum><header>Conformity for
health care facilities</header>
<subsection id="HDE1AF690C0E6427988758415C300775D"><enum>(a)</enum><header>Related party
rentals</header><text display-inline="yes-display-inline">Subparagraph (B) of
section 856(d)(8) (relating to special rule for taxable REIT subsidiaries) is
amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HA08BF001F3BE46D798EB7E87D08D7F8E" style="OLC">
<subparagraph id="HF64B5F349B2F45D696BF27BE4D002D6E"><enum>(B)</enum><header>Exception for
certain lodging facilities and health care property</header><text display-inline="yes-display-inline">The requirements of this subparagraph are
met with respect to an interest in real property which is a qualified lodging
facility or a qualified health care property (as defined in subsection
(e)(6)(D)(i)) leased by the trust to a taxable REIT subsidiary of the trust if
the property is operated on behalf of such subsidiary by a person who is an
eligible independent contractor. For purposes of this section, a taxable REIT
subsidiary is not considered to be operating or managing a qualified health
care property or qualified lodging facility solely because it directly or
indirectly possesses a license, permit or similar instrument enabling it to do
so.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H8226ED3EAABE402082EE365B4D8602AB"><enum>(b)</enum><header>Eligible
independent contractor</header><text display-inline="yes-display-inline">Subparagraphs (A) and (B) of section
856(d)(9) (relating to eligible independent contractor) are amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="HB6421A9DA169477C8F804859004942B2" style="OLC">
<subparagraph id="HE05973625A1840B7AA3B61E62607A9AA"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">The term
<term>eligible independent contractor</term> means, with respect to any
qualified lodging facility or qualified health care property (as defined in
subsection (e)(6)(D)(i)), any independent contractor if, at the time such
contractor enters into a management agreement or other similar service contract
with the taxable REIT subsidiary to operate such qualified lodging facility or
qualified health care property, such contractor (or any related person) is
actively engaged in the trade or business of operating qualified lodging
facilities or qualified health care properties, respectively, for any person
who is not a related person with respect to the real estate investment trust or
the taxable REIT subsidiary.</text>
</subparagraph><subparagraph id="HB23A46017C1344BF911D5129141E89E9"><enum>(B)</enum><header>Special
rules</header><text display-inline="yes-display-inline">Solely for purposes of
this paragraph and paragraph (8)(B), a person shall not fail to be treated as
an independent contractor with respect to any qualified lodging facility or
qualified health care property (as so defined) by reason of the
following:</text>
<clause id="HB80B288C58AF4C0A9DB521AFEF338707"><enum>(i)</enum><text display-inline="yes-display-inline">The taxable REIT subsidiary bears the
expenses for the operation of such qualified lodging facility or qualified
health care property pursuant to the management agreement or other similar
service contract.</text>
</clause><clause id="H85977F16A48D4DDDB7F95B282FB4500"><enum>(ii)</enum><text display-inline="yes-display-inline">The taxable REIT subsidiary receives the
revenues from the operation of such qualified lodging facility or qualified
health care property, net of expenses for such operation and fees payable to
the operator pursuant to such agreement or contract.</text>
</clause><clause id="H9A6FB77D58B745B2946CD405BEC3F269"><enum>(iii)</enum><text display-inline="yes-display-inline">The real estate investment trust receives
income from such person with respect to another property that is attributable
to a lease of such other property to such person that was in effect as of the
later of—</text>
<subclause id="H8B344B443679422F8F846C11D95DBB38"><enum>(I)</enum><text display-inline="yes-display-inline">January 1, 1999, or</text>
</subclause><subclause id="HE46133000BB543F8A84F099306B45406"><enum>(II)</enum><text display-inline="yes-display-inline">the earliest date that any taxable REIT
subsidiary of such trust entered into a management agreement or other similar
service contract with such person with respect to such qualified lodging
facility or qualified health care
property.</text>
</subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HD3A6D869823E4A3AAA98E965D0997861"><enum>(c)</enum><header>Taxable reit
subsidiaries</header><text>The last sentence of section 856(l)(3) is
amended—</text>
<paragraph id="H0CF9AF385FDF4B87AE00E4E00489292"><enum>(1)</enum><text>by
inserting <quote>or a health care facility</quote> after <quote>a lodging
facility</quote>, and</text>
</paragraph><paragraph id="H0F4FD34DFC7E4FF6007498DF7E9B10AA"><enum>(2)</enum><text>by inserting
<quote>or health care facility</quote> after <quote>such lodging
facility</quote>.</text>
</paragraph></subsection></section><enum>V</enum><header>Foreign
reits</header>
<section id="H0B8363BCCB8B451FA100AC9181B9CC74"><enum>501.</enum><header>Stock of
foreign REITs as real estate assets</header>
<subsection id="H58538540F78644F6A93414B060297FDC"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">The first sentence in
section 856(c)(5)(B) is amended by inserting <quote>or in a qualified foreign
REIT</quote> after <quote>this part</quote>.</text>
</subsection><subsection id="H5DCD95DCBCD84A07BFCA2CC2AD961306"><enum>(b)</enum><header>Qualified
foreign REIT</header><text display-inline="yes-display-inline">Section 856(c)
is amended by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H812FBDD95DDC4B8094007B0063AFE489" style="OLC">
<paragraph id="H52DCD21BEA1242D90023ECBABBD7F0A3"><enum>(8)</enum><header>Qualified
foreign REIT</header><text display-inline="yes-display-inline">For purposes of
this subsection, the term <term>qualified foreign REIT</term> means a
corporation, trust, or association—</text>
<subparagraph id="H35E586DCE1794BBD895029B1E1BFD754"><enum>(A)</enum><text display-inline="yes-display-inline">treated as a corporation under section
7701(a)(3),</text>
</subparagraph><subparagraph id="H3C94823F83C746B18706EF9781AB37A8"><enum>(B)</enum><text display-inline="yes-display-inline">the shares or certificates of beneficial
interests of which are regularly traded on an established securities market,
and</text>
</subparagraph><subparagraph id="HA65372DD8A524FA5BA1B33ABEFA76796"><enum>(C)</enum><text display-inline="yes-display-inline">which is organized in a country under rules
that the Secretary determines meet the following criteria:</text>
<clause id="H3D2054973B3F4C5EA992BDD4FDE73B79"><enum>(i)</enum><text display-inline="yes-display-inline">At least 75 percent of the entity's assets
must qualify as real estate assets (determined without regard to shares or
transferable certificates of beneficial interest in such entity), as determined
at the close of the entity's prior taxable year.</text>
</clause><clause id="HD6EBDAB8EF234066AE3DE422474984C"><enum>(ii)</enum><text display-inline="yes-display-inline">The entity either receives a dividends paid
deduction comparable to section 561 or is exempt from corporate level
tax.</text>
</clause><clause id="H182CAEFD6E3A4CA59CEE86BBCBCFF5B2"><enum>(iii)</enum><text display-inline="yes-display-inline">The entity is required to distribute at
least 85 percent of its annual taxable income (as computed in the jurisdiction
in which it is organized) to the holders of its shares or certificates of
beneficial interest on an annual basis.</text>
</clause><continuation-text continuation-text-level="subparagraph">In
determining whether the rules of a country meet the criteria of a qualified
foreign REIT, the Secretary shall take into account non-statutory rules such as
stock exchange listing requirements as well as existing practices resulting
from market preferences, and may take into account situations that in the
judgment of the Secretary present a significant opportunity for a foreign REIT
to generate an amount of income that is not compatible with the principles
underlying section
856(c)(3).</continuation-text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="HB771CED4FC0749F091311B78521F49D3"><enum>502.</enum><header>Dividends from
foreign REITs</header><text display-inline="no-display-inline">Section
856(c)(3)(D) is amended by inserting <quote>and in qualified foreign
REITs</quote> after <quote>this part</quote>.</text>
</section><enum>VI</enum><header>Effective
dates</header>
<section id="HB73A95C3DF284923807BFC4BD9794B85"><enum>601</enum><header>Effective
dates</header>
<subsection id="HFA006F4DE2964F719FC25D2741A0B582"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Except as otherwise
provided in this section, the amendments made by this Act shall apply to
taxable years beginning after the date of the enactment of this Act.</text>
</subsection><subsection id="HE8A85EA9B3A9476E9D7860F723E71582"><enum>(b)</enum><header>REIT income
tests</header>
<paragraph id="HCD80F21EAF3F48D7956BDEE0AB1FBB84"><enum>(1)</enum><text display-inline="yes-display-inline">The amendment made by section 101(a) and
(b) shall apply to gains and items of income recognized after the date of the
enactment of this Act.</text>
</paragraph><paragraph id="H23CC41C0EC574C5598C39C25C3ECCCA"><enum>(2)</enum><text>The amendment made
by section 101(c) shall apply to transactions entered into after the date of
the enactment of this Act.</text>
</paragraph><paragraph id="HFD90C72EA8CC4F2D830000BB6027E29B"><enum>(3)</enum><text>The amendment made
by section 101(d) shall apply after the date of the enactment of this
Act.</text>
</paragraph></subsection><subsection id="HA7CDF3AD556443E1A78D78A5CDCAEAB"><enum>(c)</enum><header>Conforming
foreign currency revisions</header>
<paragraph id="H7FC2FAA14C3C4B2FB465B9CC76FF8C99"><enum>(1)</enum><text>The amendment made
by section 103(a) shall apply to gains recognized after the date of the
enactment of this Act.</text>
</paragraph><paragraph id="H80FD5D1954844F29ADD88C6814C14586"><enum>(2)</enum><text>The amendment made
by section 103(b) shall apply to gains and deductions recognized after the date
of the enactment of this Act.</text>
</paragraph></subsection><subsection id="H925C3C72A81F41F1A2B4FC05BD2D419"><enum>(d)</enum><header>Dealer
sales</header><text>The amendments made by Title III shall apply to sales made
after the date of the enactment of this Act.</text>
</subsection></section>