2024年7月30日 · The unique tax advantages offered by real estate investment trusts (REITs) can translate into superior yields. Learn more about how REITs are taxed.

2025年1月19日 · The taxation structure of REITs is designed to encourage real estate investment by offering favorable tax treatment. Under the Internal Revenue Code (IRC) Section 856, REITs must meet specific criteria to qualify for this status.

While REITs typically don't pay corporate taxes, investors may pay ordinary income, capital gains or return of capital taxes. Here's how REITs are taxed.

2022年12月21日 · Most REIT dividends are taxed at ordinary income tax rates (10%-37% depending on income.) You may also be able to claim 20% qualified business income deduction on REIT dividends. Some REIT dividends may also be subject to capital gains tax.

REIT dividends can be taxed at different rates because they can be allocated to ordinary income, capital gains and return of capital. The maximum capital gains tax rate of 20% (plus the 3.8% Medicare Surtax) applies generally to the sale of REIT stock.

REITs are not subject to a corporate tax on taxable income distributed to shareholders, only on earnings retained by the company. While this fundamental element of REITs has not changed, the REIT industry and regulatory environment continue to evolve.

2016年10月1日 · Although REITs and REMICs are both vehicles for making passive investments in real estate, they differ significantly in their structure and their federal income taxation. The Exhibit compares REITS and REMICs in terms of federal income tax entity classification, types of ownership instruments offered, and federal tax returns filed.

2024年10月16日 · REITs have three general types of "dividends" based on their income: ordinary income, capital gains, and return of capital. Different types of REIT dividends have unique tax treatments and are reported on different boxes on the 1099-DIV form.

2023年4月17日 · Tax benefits of REITs. Current federal tax provisions allow for a 20% deduction on pass-through income through the end of 2025. Individual REIT shareholders can deduct 20% of the taxable REIT dividend income they receive (but not for …

2018年1月16日 · Income from REITs is subject to different U.S. withholding regulations depending on how the components of the income distribution are classified. Such income can include dividends, REITs capital gains dividends and return of capital.