### Question
What is the definition of shared appreciation provision?


### Answer
The definition of **shared appreciation provision** is as follows in *26 U.S.C. § 856*:

> any provision—


(i) which is in connection with an obligation which is held by the real estate investment trust and is secured by an interest in real property, and


(ii) which entitles the real estate investment trust to receive a specified portion of any gain realized on the sale or exchange of such real property (or of any gain which would be realized if the property were sold on a specified date)

#### Citation:
  - *26 U.S.C. § 856*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter M-Regulated Investment Companies and Real Estate Investment Trusts > PART II-REAL ESTATE INVESTMENT TRUSTS**

