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TITLE 26-INTERNAL REVENUE CODE Section 1608(c) of Pub. L. 94-455 provided that: "The amendments made by sections 1606 and 1607 (enacting section 172(b)(1)(E)(d)(7) of this title, amending subsec. (b)(2)(B), (3)(A), (C) of this section and sections 46(e)(2) and 443(e)(5) of this title, and re- pealing subsecs. (b)(2)(A), (E) of this section] shall apply to taxable years ending after the date of the en- actment of this Act [Oct. 4, 1976]; except that in the case of a taxpayer which has a net operating loss (as defined in section 172(c) of the Internal Revenue Code of 1954) [section 172(c) of this title] for any taxable year ending after the date of enactment of this Act [Oct. 4, 1976J for which the provisions of part II of subchapter M of chapter 1 of subtitle A of such Code [this title] apply to such taxpayer, such loss shall not be a net operating loss carryback under section 172 of such Code to any taxable year ending on or before the date of enactment of this Act [Oct. 4, 1976]." Amendment of subsec. (b)(1), (3)(C) by sectfon 1901(a)(112), (b)(1)(V), (33)(K) of Pub. L. 94-455 effec. tive for taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94-455, set out as an Effec- tive Date of 1976 Amendment note under section 2 of this title. EFFECTxVE DATE OF 1975 AMENDMENT Amendment by Pub. L. 93-625 applicable to foreclo- sure property acquired after Dec. 31, 1973, see section 6(e) of Pub. :,. 93-625, set out as an Effective Date of 1975 Amendment note under section 856 of this title. EFFECTIVE DATE OF 1969 AMENDMENT Amendment by Pub. L. 91-172 applicable with re- spect to taxable years beginning after Dec. 31, 1969, see section 511(d) of Pub. L. 91-172, set out as an Ef- fective Date note under section 1201 of this title. EFFECTIVE DATE OF 1964 AMENDMENT Amendment by Pub. L. 88-272 applicable with re- spect to dividends received after Dec. 31, 1964, in tax- able years ending after such date, see section 201(e) of Pub. L. 88-272, set out as Effective Date of 1964 Amendment note under section 37 of this title. EFFECTIVE DATE Section applicable with respect to taxable years of real estate investment trusts beginning after Dec. 31, 1960, see section 10(k) of Pub. L. 86-779, set out as an Effective Date note under section 856 of this title. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 46, 58, 172, 443, 1201, 4981 of this title. SECTION REFERRED TO IN D.C. CODE This section is referred to in section 47-1557b of the District of Columbia Code. § 858. Dividends paid by real estate investment trust after close of taxable year (a) General rule For purposes of this part, if a real estate in- vestment trust- (1) declares a dividend before the time pre- scribed by law for the filing of its return for a taxable year (including the period of any ex- tension of time granted for filing such return), and (2) distributes the amount of such dividend to shareholders or holders of beneficial inter- ests in the 12-month period following the close of such taxable year and not later than the date of the first regular dividend payment made after such declaration, the amount so declared and distributed shall, to the extent the trust elects in such return (and specifies in dollar amounts) in accordance with regulations prescribed by the Secretary, be con- sidered as having been paid only during such taxable year, except as provided in subsections (b) and (c). (b) Receipt by shareholder Amounts to which subsection (a) applies shall be treated as received by the shareholder or holder of a beneficial interest in the taxable year in which the distribution is made. (c) Notice to shareholders In the case of amounts to which subsection (a) applies, any notice to shareholders or hold- ers of beneficial interests required under this part with respect to such amounts shall be made not later than 30 days after the close of the taxable year in which the distribution is made. (Added Pub. L. 86-779, § 10(a), Sept. 14, 1960, 74 Stat. 1008, and amended Pub. L. 94-455, title XVI, §§ 1604(h), title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1752, 1834.) AMENDMENTS 1976-Subsec. (a). Pub. L, 94-455, §§ 1604(h), 1906(b)(13)(A), added "(and specifies ie dollar amounts)" following "to the extent the trust elects in such return" and substituted "paid only during such taxable year" for "paid during such taxable year', and struck out "or his delegate" following "Secretary". EFFECTIVE DATE OF 1976 AMENDMENT For effective date of amendment of subsec. (a) by section 1604(h) of Pub. L. 94-455, see section 1608(d) of Pub. L. 94-455, set out as an Effective Date of 1976 Amendment note under section 856 of this title. EFFECTIVE DATE Section applicable with respect to taxable years of real estate investment trusts beginning after Dec. 31, 1960, see section 10(k) of Pub. L. 86-779, set out as an Effective Date note under section 856 of this title. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 857 of this title. SECTION REFERRED TO IN D.C. CODE This section is referred to in section 47-1557b of the District of Columbia Code. § 859. Deduction for deficiency dividends (a) General rule If a determination (as defined in subsection (c)) with respect to a real estate investment trust results in any adjustment (as defined in subsection (b)(1)) for any taxable year, a deduc- tion shall be allowed to such trust for the amount of deficiency dividends (as defined in subsection (d)) for purposes of determining the deduction for dividends paid (for purposes of section 857) for such year. (b) Rules for application of section (1) Adjustment For purposes of this section, the term "ad- justment" means- (A) any Increase In the sum of- (i) the real estate investment trust tax- able income of the real estate investment trust (determined without regard to the deduction for dividends paid (as defined in section 561) and by excluding any net capital gain), and § 858 Page 552