% | $
Quotes you view appear here for quick access.

iShares Mortgage Real Estate Capped Message Board

  • dniel54 dniel54 Mar 27, 2013 6:11 PM Flag

    Distribution taxation

    Are they similar to mlps , reits or regular divs

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • MY UNDERSTANDING: REITS are taxed at the higher 'personal tax rate' (and not at the lower dividend rate)...My dad sent me some info showing that REM has no "return of capital" listed, so that's nice (with "roc", you have to subtract that portion from your cost basis on the shares, and pay taxes later on the stock gains, for that 'roc' portion / the remainder of dividends received would be taxed now....So, with no ROC that I can find for REM, the total amt. received in dividends will be fully taxable in the year the higher (personal) tax rate.

      • 1 Reply to h5n1eric
      • ...But if you have your REM shares in an IRA, then you'll not have to pay any of the taxes on the dividends, until you remove money from the IRA...i.e. sell it & remove the money (however, there are some complicated rules about these 'things' that I won't even attempt to go into)...But, I never have paid tax on any distributions nor have I worried about any cost adjustments on the shares whenever "roc" was involved...i.e. Uncle Sam will get his full tax rate on my REIT shares (and other stocks and dividends) whenever I remove money from my IRA, later in life...All of it will be taxed at the higher 'personal rate'...but I'll try to hold off removing any money from my IRA until I'm 70.5 y.o.

10.477-0.093(-0.88%)12:02 PMEDT