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When was the 721 Exchange Created?
The 721 exchange, also known as a contribution or an Umbrella Real Estate Investment Trust (UPREIT) exchange, is a tax-deferred transaction that allows investors to exchange their ownership in a property for ownership in a larger, more diversified real estate investment without incurring immediate taxes on the gains from the sale of the original property.
Are REIT Dividends Taxed as Ordinary Income?
REITs can provide a low capital entry point for those who want to get involved with real estate investing. They can provide dividends and potential capital appreciation. However, taxation is quite different between REITs and real property. Do REIT dividends offer any of the tax benefits that real property income provides, or is it all taxed as ordinary income?
How Are REIT Dividends Taxed?
REIT dividends can have a mixture of taxation. This all depends on the specific REIT. Because of these differences, understanding the taxation of REIT dividends can be somewhat complex. In this article, we’ll discuss how REIT dividends might be taxed.
Are REITs a Good Investment During Inflation?
Some people consider direct real estate investments to be an inflation hedge. But direct real estate investing and REIT (real estate investment trust) investing are two very different worlds. Are REITs also considered an inflation hedge? That’s what we’ll explore in this article.
When Did REITs Start?
A REIT is a Real Estate Investment Trust. This fractional investment structure provides an opportunity for investors to participate in commercial real estate without being involved in the actual management or maintenance of the property. REITs own, operate, or finance properties intending to earn income for their investors. They work like mutual funds. The REIT Act was part of the Cigar Excise Tax Extension of 1960, passed by Congress and signed by President Eisenhower to broaden access to real estate investing. REITs were advanced further with the Tax Reform Act of 1986, which enabled REITs to operate and manage real estate in addition to owning or financing it.
Are REITs Redeemable?
Real estate investors can choose to buy investment properties directly or place their money into a real estate fund. If you're interested in real estate investing but want to add even more diversification to your portfolio, you could also consider investing in a real estate investment trust (REIT). These are companies that are designed specifically to own and operate real estate that generates income. While REITs are often considered alternative investments, you may be wondering if this type of investment is redeemable. Here's a closer look at what REITs are and if they can be redeemed.
Are REITs Required to Pay Dividends?
Investors evaluating options in real estate have ample choices. They can buy property directly and either manage it or use a property manager. They can collaborate with other investors through tenancy-in-common structures or crowdfunding syndications. Or they can invest in a Real Estate Investment Trust (REIT).
How Can I Invest In REITs?
Real Estate Investment Trusts (REITs) have a singular purpose. Specifically, they allow you, the investor, to invest in real estate without having to buy or finance your own properties. In fact, they were created for that very purpose; in 1960, Pres. Dwight D Eisenhower signed legislation that created REITs, thus opening real estate investment to regular Americans.
How Do REITs Perform in a Bear Market?
When investors discuss the stock market, they may use terms like “trading,” “bear market,” “bull market,” “correction,” “volatility,” and more. So if you participate in the market, aspire to, or just want to keep up with current economic conditions, it’s a good idea to develop your knowledge of how the market works.
How Do Rising Interest Rates Affect REITs?
Real Estate Investment Trusts continue to show sustained popularity with investors seeking income and returns. In fact, the Wall Street Journal reports that the funds managed more than $224 billion by the end of 2021. Among the motivations for shareholders are the desire to own commercial real estate, the pursuit of truly passive income, and returns that have often outpaced increases in the cost of living. Some investors who have held real estate and managed it actively prefer to transition to REIT participation as a way to maintain their real estate involvement without the need to remain involved with tenants directly.
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