interest for purposes of this chapter. (B) Distributions of property with respect to stock Any distribution of property (as defined in section 317(a)) to which section 301(a) applies. (c) Definitions relating to entities For purposes of this section— (1) Applicable entity The term applicable entity means any person— (A) which is engaged in the active conduct of a trade or business, and (B) with respect to which any other person conducts activities in connection with an applicable trade or business. (2) Applicable controlling entity The term applicable controlling entity means, with respect to any applicable entity, any person— (A) which is engaged in an applicable trade or business some or all of the activities of which are conducted in connection with the applicable entity, and (B) which controls (or is related within the meaning of section 267(b) or 707(b) to a person which controls) the applicable entity. (3) Applicable trade or business The term applicable trade or business means any activity conducted on a regular, continuous, and substantial basis which, regardless of whether the activity is conducted in one or more entities, consists, in whole or in part, of— (A) raising or returning capital, and (B) either— (i) investing in or disposing of specified assets (or identifying specified assets for such investing or disposition), or (ii) developing specified assets. (4) Specified asset The term specified asset means— (A) securities (as defined in section 475(c)(2) but without regard to the phrase widely held or publicly traded in subparagraph (B) thereof and without regard to the last sentence thereof), and (B) real estate held for rental or investment. (d) Rules and definitions relating to ownership attribution and control For purposes of this section— (1) Constructive ownership rules used in determining related party In determining whether persons are related within the meaning of section 267(b) or 707(b), the constructive ownership rules of section 318 shall apply in lieu of the constructive ownership rules