### Question
How is the "testing period" defined?


### Answer
The term **testing period** is defined in *26 U.S.C. § 897* as follows -

> whichever of the following periods is the shortest:


(i) the period beginning on June 19, 1980, and ending on the date of the disposition or of the distribution, as the case may be,


(ii) the 5-year period ending on the date of the disposition or of the distribution, as the case may be, or


(iii) the period during which the REIT was in existence

#### Citation:
  - *26 U.S.C. § 897*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter N-Tax Based on Income From Sources Within or Without the United States > PART II-NONRESIDENT ALIENS AND FOREIGN CORPORATIONS > Subpart D-Miscellaneous Provisions**

