REVISIONS TO REIT ASSET TESTS.

SEC. 3032. REVISIONS TO REIT ASSET TESTS.(a) Clarification of Valuation Test.—The first sentence in the matter following section 856(c)(4)(B)(iii)(III) is amended by inserting “(including a discrepancy caused solely by the change in the foreign currency exchange rate used to value a foreign asset)” after “such requirements”.(b) Clarification of Permissible Asset Category.—Section 856(c)(5), as amended by section 3031(c), is amended by adding at the end the following new subparagraph:“(K) Cash.—If the real estate investment trust or its qualified business unit (as defined in section 989) uses any foreign currency as its functional currency (as defined in section 985(b)), the term ‘cash’ includes such foreign currency but only to the extent such foreign currency—“(i) is held for use in the normal course of the activities of the trust or qualified business unit which give rise to items of income or gain described in paragraph (2) or (3) of subsection (c) or are directly related to acquiring or holding assets described in subsection (c)(4), and“(ii) is not held in connection with an activity described in subsection (n)(4).”.122 STAT. 2900