Taxation of High-Yield REIT and BDC Distributions
1 report, 1 independent
Updated Oct 29
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What happened
Distributions from REITs and BDCs are generally taxed as ordinary income, meaning that in the top 37% federal tax bracket, the IRS may take over a third of the payout. REIT dividends may be eligible for the 26 U.S.C. ยง 199A deduction, which reduces the tax liability.
From 247wallst.com
Why it matters
Because REIT and BDC distributions typically do not qualify for capital gain rates, they are taxed at the investor's marginal rate. This tax structure significantly impacts the net returns for investors holding these high-yield investments.
From 247wallst.com
Who's involved
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