Real Estate Investment Trusts (REITs)
A REIT owns, operates, or finances income-producing RE. Requirements: 75% assets in RE, 75% income from rent/mortgages, distribute 90% of income, 100+ shareholders. Types: equity (own properties), mortgage (lend), hybrid. Not taxed at corporate level if 90% distributed. Shareholder dividends: ordinary income. Section 199A: 20% QBI deduction. Traded on exchanges like stocks.
Requirements
- 75% assets in real estate
- 90% income distributed
- 100+ shareholders
Types
- Equity: own properties
- Mortgage: lend/invest in mortgages
- Public, non-traded, private
Taxation
- No corporate tax if 90% distributed
- Dividends: ordinary income
- Section 199A: 20% QBI deduction
Related Terms
- Real Property — Land and improvements
Barnes Walker Real Estate
Barnes Walker’s attorneys advise on REIT investments in Florida. Request a legal inquiry for assistance.
Florida Law Reference
Fla. Stat. Ch. 736 (Florida Trust Code)
The Florida Trust Code governs the creation, modification, and administration of trusts, including trustee duties, beneficiary rights, and trust termination.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC