Products & RisksCâu 26 / 125

A real estate investment trust (REIT) that qualifies for favorable tax treatment must generally:

a.Invest only in residential mortgages
b.Distribute at least 90% of its taxable income to shareholders
c.Guarantee a fixed dividend to investors
d.Be organized as a limited partnership

Giải thích

To qualify as a REIT and avoid corporate-level taxation on distributed income, the trust must distribute at least 90% of its taxable income to shareholders and meet asset and income tests concentrated in real estate. REIT dividends are then generally taxed to shareholders, and REITs are not flow-through vehicles for passing losses.

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