H.R. 2198 — To amend the Internal Revenue Code of 1986 to restore the taxable REIT subsidiary asset test.

H.R. 2198 — To amend the Internal Revenue Code of 1986 to restore the taxable REIT subsidiary asset test. | JustPolicyThe main purpose of this legislation is to change the rules regarding how much of a Real Estate Investment Trust's (REIT) assets can be held in taxable subsidiaries. Specifically, it aims to increase the limit from 20 percent to 25 percent. This change is intended to provide more flexibility for REITs in managing their investments and operations through subsidiaries that may be subject to different tax rules. The key provision of this legislation is the amendment to the Internal Revenue Code, which alters the asset test for taxable REIT subsidiaries.