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Chimera Investment Corporation Message Board

lokix1_2000 2 posts  |  Last Activity: Nov 12, 2014 2:52 PM Member since: Jul 16, 2001
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  • lokix1_2000 lokix1_2000 Nov 12, 2014 2:52 PM Flag

    Typical - attack the the party bringing the facts. First you idiot - I said taxable income. Taxable income is after all expenses. You are thinking about revenue. Look it up. A reit is taxed as a corporatiopn that gets a special deduction for dividends paid if it continues to qualify as a REIT. if the REITs net taxbale income is $100M it must pay at least $90 million out in dividends to maintain REIT status. However, if it only does the required amount it then as a remaining taxable income of $10 (i.e., $100-90) and it would pay taxes at around 40% on that or $4 million. However most REITs would rather pay out 100% of taxable income so they pay no tax. Taxable income may be different than GAAP net income or Core Earnings but I don't want to confuse your feeble mind anymore.....

  • lokix1_2000 lokix1_2000 Nov 11, 2014 6:17 PM Flag

    A REIT is a corporation that gets a special deduction for dividends paid - if they only pay out 90% to maintain their tax status they will pay corporate level taxes on the remaining 10% (or about 4%). Generally REITs pay 100% of taxable income for this reason so that they pay no tax. They can manage a litte since there is some carryforward/drag back - but that is on the margin and can only do so much management between years. Thats why you are more likely to also see more special dividends in the MREIT world and very view in the property REIT world. I think we will see some level of special divy again....

    Sentiment: Hold

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