I think that it is well established now that reit dividends will not qualify for the new 15% rate. Thanks guys.
I have another tax question, *not* related to reits. Can straight preferred stock dividends qualify for the 15% rate (assuming that the common shares do). I'm not talking about bonds, derivatives, reits, or anything else; just ordinary straight preferred stock of listed corporations.
Is there anything in the new law that catagorically excludes preferred stock dividends from the new 15% rate?
Straight preferred (keeping in mind that certain reit prfds DO NOT qualify) do qualify.
The reason I believe this is that straight prfds qualify for the corporate DRD (dividends received deduction) which exists in order to encourage corporations to invest in the prfd stocks of other corporations.