I heard about something called the 90% REIT rule and I'm wondering what it is. Could someone explain this rule to me in simple terms? I'm curious to know how it applies to REITs and their operations.
7 answers
InfinityRider
Tue Jan 07 2025
Consequently, the majority of dividends received by investors from REITs are taxed as ordinary income.
HallyuHype
Tue Jan 07 2025
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Arianna
Tue Jan 07 2025
This treatment differs from qualified dividends, which are taxed at a lower rate.
Matteo
Tue Jan 07 2025
Investors should be aware of this tax implication when considering REIT investments.
CryptoAlchemist
Tue Jan 07 2025
REITs are legally obligated to distribute a minimum of 90% of their taxable income to their shareholders.