1 November 2010 External T.I. 2010-0368211E5 - Revenues of a REIT -- summary under Real Estate Investment Trust

Where a subtrust has allocated to a trust a taxable capital gain of $50 under s. 104(21), the trust will be considered to have derived a capital gain of $100 from the particular subtrust properties which were disposed of. S. 108(5) does not apply to a taxable capital gain that has been designated under s. 104(21), and in fact both $50 amounts would be derived from the disposition of the particular properties in question.