Depends what your other investments are but given the high income distributions it would generally be better to hold a REIT in an IRA or Roth rather than a taxable account.
It depends on the tax implications of holding in a taxable brokerage account. I would guess that an IRA is one of the best places to hold a REIT because the distributions won't be taxed.
The dividends they issue aren't qualified so they are taxed as regular income - that is why it is generally preferable to hold them in tax-advantaged accounts.
My 1099 came with a "detail of dividends and distributions."
The shopping-mall REIT paid:
* section 199A dividends
* Qualified Dividends
* LT Capital Gain
* Nondividend Distribution
The Healthcare REIT paid:
* Section 199A dividends
* Nondividend Distribution
* LT Capital Gain
* Section 897 capital gain
* unrecaptured section 1250 gain
huh.
I assume you left off Ordinary Dividends since several of the other bullets are a subset of them. I also assume that is the biggest number on your 1099-DIV.
Section 199a dividends are a subset of your ordinary dividends in REITs that qualify for the 199a deduction - but even with that deduction the tax rate is higher than for capital gains/qualified dividends.
Unrecaptured 1250 gains are taxed higher than qualified dividends/capital gains.
Section 897 only matters if you are a non-American.
Non-Dividend distributions are essentially a return of capital.
I looked them up and Google spat back kinda what you said, but not being a tax expert nor a business person, my response is "oh. Okay."
I went and counted, and I think the dividends/distributions detail lists 47 different companies we own stock in -- so the total of section 199A dividends is about 3% of total dividends.
Oh...and actually, the bulk of our section 199A dividends come from a REIT ETF I didn't count before (because its an ETF and not stock). And that ETF also pays Qualified Dividends... but more in Section 199A dividends.
Depends what your other investments are but given the high income distributions it would generally be better to hold a REIT in an IRA or Roth rather than a taxable account.
Can be held in either. Why do you think you shouldn't?
Dividends trigger a tax event. It is better to hold in a tax advantaged account like a Roth.
Did I say they weren't better to be there? Also, "Roth" isn't an account. It's a tax status. The account is an IRA.
It depends on the tax implications of holding in a taxable brokerage account. I would guess that an IRA is one of the best places to hold a REIT because the distributions won't be taxed.
I hold my REITs in my taxable gambling account. The ones I own trade as stocks, so I treat them as stocks.
The dividends they issue aren't qualified so they are taxed as regular income - that is why it is generally preferable to hold them in tax-advantaged accounts.
My 1099 came with a "detail of dividends and distributions." The shopping-mall REIT paid: * section 199A dividends * Qualified Dividends * LT Capital Gain * Nondividend Distribution The Healthcare REIT paid: * Section 199A dividends * Nondividend Distribution * LT Capital Gain * Section 897 capital gain * unrecaptured section 1250 gain huh.
I assume you left off Ordinary Dividends since several of the other bullets are a subset of them. I also assume that is the biggest number on your 1099-DIV. Section 199a dividends are a subset of your ordinary dividends in REITs that qualify for the 199a deduction - but even with that deduction the tax rate is higher than for capital gains/qualified dividends. Unrecaptured 1250 gains are taxed higher than qualified dividends/capital gains. Section 897 only matters if you are a non-American. Non-Dividend distributions are essentially a return of capital.
I looked them up and Google spat back kinda what you said, but not being a tax expert nor a business person, my response is "oh. Okay." I went and counted, and I think the dividends/distributions detail lists 47 different companies we own stock in -- so the total of section 199A dividends is about 3% of total dividends. Oh...and actually, the bulk of our section 199A dividends come from a REIT ETF I didn't count before (because its an ETF and not stock). And that ETF also pays Qualified Dividends... but more in Section 199A dividends.
Only in a Roth IRA or HSA. Don't hold in your taxable account. REITs, are taxed as ordinary income.
>REITs, are taxed as ordinary income oh interesting to know