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We compute the cohomology rings of smooth real toric varieties and of real toric spaces, which are quotients of real moment-angle complexes by freely acting subgroups of the ambient 2-torus. The differential graded algebra (dga) we present is in fact an equivariant dga model, valid for arbitrary coefficients. We deduce from our description that smooth toric varieties are 
$\hbox{M}$-varieties.
