Investment Vehicles第 86 / 100 题

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

a.Retain all of its income
b.Distribute a large majority of its taxable income to shareholders
c.Invest only in government bonds
d.Avoid paying any dividends

解析

A REIT must distribute a large majority of its taxable income, generally at least 90 percent, to shareholders to qualify for pass-through tax treatment. This produces relatively high dividend income for investors. REITs provide real estate exposure without direct property ownership.

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