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CommonWealth Reit Message Board

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  • bluelivermore bluelivermore Jan 20, 2012 3:04 PM Flag

    25% dividend tax free

    That's return of your capital. The underlying assets are worth 25% less. You do get that right?

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    • You do not understand REITs
      Its called depreciation.

      • 2 Replies to marcpark
      • You don't understand the difference between,
        Depreciation and Return of Capital
        Depreciation is the amount of value a property loses over a set period of time. Generally 30 years for commercial property.
        Return of Capital is they sell the properties and give you back your money that you invested in the pool that was invested in property.
        Depreciation offsets Revenue and Profits.
        Return of Capital offsets assets held, resulting in less assets held.
        Maybe you should think about an investment you understand. Like bonds. Which is what you are describing. However if you depreciate bonds you will do jail time, unless your a Federal Reserve Banker. Although the face value of any bond should be depreciated based on the amount of currency placed in circulation, based on an increase in new unfunded debt.
        The value of CWH common should be depreciated based on the amount of shares issued in any given tax year and reported to the share holders as a depreciation capture. Notice how they are not reporting share depreciation to you based on new shares issued in any given year. That is accepted because your government does it all the time, by issuing treasuries in US currency, over and above the existing debt, it called currency inflation. Call the IRS and tell them you want to depreciate the value of your US Bonds based on currency printing in the form of US Bonds circulation increase, in US currency, for any given year. Then claim that deduction. They will put you in Federal Prison for depreciating US Bonds, thus US currency.
        You need to understand Retun of Capital, Inflation, and Depreciation.

        CWH is going to cheat you by issuing new shares of a new entity, and not giving you any of the new entities assets. No return of capital, no depreciation, no dicontinued operations, no share inflation. Just theft of your assets to form a new entity with your assets.

      • return of capital is that amount of dividend which exceeds the net income per share. depreciation is a major source of cash flow in REITS.