(

a) A real estate investment trust shall be deemed to have satisfied the distribution requirements of

Section 857(a)(1) of the Internal Revenue Code for purposes of this

part if it satisfies the distribution requirements of

Section 857(a)(1) of the Internal Revenue Code for federal purposes. (b)

(1) Section 857(b)(1) of the Internal Revenue Code, relating to imposition of tax on real estate investment trusts, shall not apply.

(2) Every real estate investment trust shall be subject to the taxes imposed under

Chapter 2 (commencing with

Section 23101) and

Chapter 3 (commencing with

Section 23501), except that its “net income” shall be equal to its “real estate investment trust income,” as defined in subdivision (c). (c) “Real estate investment trust income” means real estate investment company taxable income, as defined in

Section 857(b)(2) of the Internal Revenue Code, modified as follows:

(1) In lieu of

Section 857(b)(2)(

A) of the Internal Revenue Code, relating to special deductions for corporations, no deduction shall be allowed under

Section 24402.

(2) Section 857(b)(2)(

D) of the Internal Revenue Code, relating to an exclusion for an amount equal to the net income from foreclosure property, shall not apply.

(3) Section 857(b)(2)(

E) of the Internal Revenue Code, relating to a deduction for an amount equal to the tax imposed in the case of failure to meet certain requirements for the taxable year, shall not apply.

(4) Section 857(b)(2)(

F) of the Internal Revenue Code, relating to an exclusion for an amount equal to any net income derived from prohibited transactions, shall not apply. (

d) Section 857(b)(3) of the Internal Revenue Code, relating to an alternative tax in case of capital gains, shall not apply. (

e) Section 857(b)(4)(

A) of the Internal Revenue Code, relating to the imposition of tax on income from foreclosure property, shall not apply. (

f) Section 857(b)(5) of the Internal Revenue Code, relating to the imposition of tax in case of failure to meet certain requirements, shall not apply. (

g) Section 857(b)(6)(

A) of the Internal Revenue Code, relating to the imposition of tax on income from prohibited transactions, shall not apply. (

h) Section 857(b)(7) of the Internal Revenue Code, relating to income from redetermined rents, redetermined deductions, and excess interest, shall not apply. (

i) Section 857(

c) of the Internal Revenue Code, relating to restrictions applicable to dividends received from real estate investment trusts, is modified to refer to Sections 24402, 24406, 24410, and 25106, in lieu of

Section of the Internal Revenue Code. (

j) The amendments to this

section by

Chapter of the Statutes of are clarifications of legislative intent and shall apply to taxable years beginning on or after January 1, 1987.