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American Capital Agency Corp. Message Board

  • mmichaelr mmichaelr Feb 7, 2013 6:59 PM Flag

    Hey dar200 would you like to explain how

    you arrived at this "They have until they file their 2012 tax return in September to pay out the 2.18 to avoid paying income taxes for 2012 undistributed."

    American Capital Agency Corp. was founded in 2008

    A REIT must adopt a calendar unless it first qualified for REIT .status before October 5, 1976.

    Generally, a REIT must file its income tax return by the 15th day of the 3rd month
    after the end of its tax year.

    A REIT may not change its tax year to any tax year other than the calendar year.

    They would have to file (generally by the regular due date) Form 7004, to request a 6-month extension of time to file.

    And people say the current education system is failing??

    Sentiment: Hold

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    • This has been covered ad nauseam in the past. Feel free to search the post history for links to the actual forms and applicable laws.

      A Reit has until they file their tax return to distribute cash and have it count as a distribution of prior year earnings. That makes complete sense when you think about it - most companies do not know how much taxable income they will actually show on their return at 12/31, so expecting a REIT to know exactly what 90% of that number would be ridiculous.

      As you pointed out, they can file a six month extension in March, so they don't have to file their actual tax return until September. Effectively giving them until September of the following year to distribute enough cash to cover the prior year's earnings. Its just kicking the can down the road.

    • The mREIT has until 6 months following the due date of its tax return to distribute the dividends on income earned in the tax year.

      That's September 15, for a tax year ending in December and a tax due date of March 15.

      I don't think that's changed by a delay in its filing date, but I may be misremembering. It happens.

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