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

Bill 119 HR 2198, also known as the "Restore the Taxable REIT Subsidiary Asset Test Act," aims to amend the Internal Revenue Code of 1986. The main purpose of this bill is to reinstate the taxable REIT subsidiary asset test, which was previously eliminated.

A Real Estate Investment Trust (REIT) is a company that owns, operates, or finances income-producing real estate. In order to maintain their status as a REIT, these companies must meet certain requirements, one of which is the taxable REIT subsidiary asset test. This test ensures that a REIT's taxable subsidiaries do not hold a significant amount of non-real estate assets.

The bill seeks to restore this asset test in order to prevent abuse of the REIT structure and ensure that these companies are primarily focused on real estate investments. By reinstating this test, the bill aims to promote transparency and accountability within the REIT industry. Overall, the "Restore the Taxable REIT Subsidiary Asset Test Act" is a measure designed to strengthen the regulations surrounding REITs and protect the integrity of the real estate investment market.