3-year average fair market value percentage
Defined in 1 place of the United States Code.
The term “3-year average fair market value percentage” means, with respect to any taxable year, the ratio (expressed as a percentage) of—
(i) the fair market value of property (other than sales of foreclosure property or sales to which section 1033 applies) sold during the 3 taxable year period ending with such taxable year, divided by
(ii) the sum of the fair market value of all of the assets of the trust as of the beginning of each of the 3 taxable years which are part of the period referred to in clause (i).
(I) In the case of a sale on or before the termination date, the sale of property which is not a prohibited transaction through the application of subparagraph (D) shall be considered property held for investment or for use in a trade or business and not property described in section 1221(a)(1) for all purposes of this subtitle. For purposes of the preceding sentence, the reference to subparagraph (D) shall be a reference to such subparagraph as in effect on the day before the enactment of the Housing Assistance Tax Act of 2008, as modified by subparagraph (G) as so in effect.
Source
- 2015–201826 U.S.C. § 857Internal Revenue Code · Taxation of real estate investment trusts and their beneficiaries · for purposes of this part
The term "3-year average fair market value percentage" means, with respect to any taxable year, the ratio (expressed as a percentage) of—
(i) the fair market value of property (other than sales of foreclosure property or sales to which section 1033 applies) sold during the 3 taxable year period ending with such taxable year, divided by
(ii) the sum of the fair market value of all of the assets of the trust as of the beginning of each of the 3 taxable years which are part of the period referred to in clause (i).
(I) Sales of property that are not a prohibited transaction
In the case of a sale on or before the termination date, the sale of property which is not a prohibited transaction through the application of subparagraph (D) shall be considered property held for investment or for use in a trade or business and not property described in section 1221(a)(1) for all purposes of this subtitle. For purposes of the preceding sentence, the reference to subparagraph (D) shall be a reference to such subparagraph as in effect on the day before the enactment of the Housing Assistance Tax Act of 2008, as modified by subparagraph (G) as so in effect.
Source
- 2015–present26 U.S.C. § 857Internal Revenue Code · Taxation of real estate investment trusts and their beneficiaries · for purposes of this part