United States. Congress

“ Net Income From Prohibited Transactions.— Clause (i) of section 857 (b) (6) (B) is amended to read as follows: " (i) the term 'net income derived from prohibited transactions' 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;". ”

“ Exception for certain lodging facilities and health care property.—The requirements of this subparagraph are met with respect to an interest in real property which is a qualified lodging facility (as defined in paragraph (9) (D) ) 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. ”

“ Secretarial authority to exclude other items of income.—To the extent necessary to carry out the purposes of this part, the Secretary is authorized to determine, solely for purposes of this part, whether any item of income or gain which— " (i) does not otherwise qualify under paragraph (2) or (3) may be considered as not constituting gross income for purposes of paragraphs (2) or (3) , or " (ii) otherwise constitutes gross income not qualifying under paragraph (2) or (3) may be considered as gross income which qualifies under paragraph (2) or (3) .". ”