[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 2715 Introduced in Senate (IS)]

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117th CONGRESS
  1st Session
                                S. 2715

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


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                   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

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                                 A BILL


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

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 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.
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