held or acquired after the 90-day period beginning with the date of the enactment of this Act. (B) Transition rule If a taxpayer has a capital loss carryover to any taxable year of the taxpayer beginning after the close of the 90-day period described in subparagraph (A), the taxpayer shall, in addition to other short-term capital gain of the taxpayer (if any), treat as short-term capital gain (rather than as ordinary income) an amount equal to the lesser of— (i) the net gain (if any) from sales or exchanges during such taxable year of assets to which section 1221(a)(9) of such Code (as added by paragraph (1)) applies, or (ii) the capital loss carryovers to such taxable year from taxable years beginning before the close of such period. (d) RICs allowed net operating loss deduction (1) In general Paragraph (2) of section 852(b) is amended by striking subparagraph (B) and by redesignating subparagraphs (C) through (G) as subparagraphs (B) through (F), respectively. (2) Restriction on carryback of losses Subparagraph (B) of section 172(b)(1) is amended— (A) by striking REIT each place it appears in the text and inserting RIC or REIT , (B) by striking part II of subchapter M (relating to real estate investment trusts) in clause (iii) and inserting part I or II of subchapter M , (C) by striking REIT’S in the heading for such subparagraph and inserting RIC’s or REIT’s , and (D) by striking REIT in the heading for clause (iii) and inserting RIC or REIT . (3) Other modifications Paragraph (6) of section 172(d) is amended to read follows: (6) Modifications related to RICs and REITs In the case of any taxable year for which part I or II of subchapter M applies to the taxpayer— (A) the net operating loss for such taxable year shall be computed by taking into account— (i) in the case of a regulated investment company, the adjustments described in section 852(b)(2) (other than the deduction for dividends paid described in subparagraph (C) thereof)), and (ii) in the case of a real estate investment trust, the adjustments