INTERESTS IN RICS AND REITS NOT EXCLUDED FROM DEFINITION OF UNITED STATES REAL PROPERTY INTERESTS.

SEC. 325. INTERESTS IN RICS AND REITS NOT EXCLUDED FROM DEFINITION OF UNITED STATES REAL PROPERTY INTERESTS. (a) [26 U.S.C. 897] In General.—Section 897(c)(1)(B) is amended by striking “and” at the end of clause (i), by striking the period at the end of clause (ii)(II) and inserting “, and”, and by adding at the end the following new clause: “(iii) neither such corporation nor any predecessor of such corporation was a regulated investment company or a real estate investment trust at any time during the shorter of the periods described in subparagraph (A)(ii).” . (b) [26 U.S.C. 897 note] Effective Date.—The amendment made by this section shall apply to dispositions on or after the date of the enactment of this Act.