Section 199A dividends refer to dividends paid out by real estate investment trusts (REITs) or funds holding REITs. Similar to regular dividends, Section 199A dividends take some amount of capital from a company’s equity and redistribute it to shareholders based on the number of shares they possess. 199A dividends, however, are only paid out by REITs and funds holding REITs, and therefore receive special treatment in the world of tax law.
Investors Can Deduct Up to 20% of REIT Income. Meaning: Investors could now deduct up to 20% off any income obtained from dividends paid by real estate investment trusts (REITs). The same deduction applies to dividends obtained from mutual funds, if a meaningful amount of the fund’s income came from dividends distributed by REITs. Any dividends eligible for this deduction are colloquially referred to as Section 199A dividends.
Source: Dividend Investor
Related Articles:
Dividend Growth Stocks News
- The Smartest High-Yielding Dividend Stocks in the S&P 500 Index to Buy With $3,000 Right Now - Yahoo Finance - 5/18/2025
- 10 Unstoppable Dividend Stocks to Buy Now - Insider Monkey - 5/19/2025
- 3 Middle Eastern Dividend Stocks To Consider With Up To 7.0% Yield - Yahoo - 5/19/2025
- European Dividend Stocks To Consider Now - Yahoo Finance - 5/15/2025
- PepsiCo, Inc. (PEP): One of the Best High-Yield Dividend Stocks for 2025 and Beyond - Yahoo Finance - 5/10/2025
- Automatic Data Processing Inc. (ADP) Dividend Stock Analysis - 5/16/2025
- Air Products and Chemicals Inc. (APD) Dividend Stock Analysis - 5/9/2025
- Waste Management, Inc. (WM) Dividend Stock Analysis - 5/2/2025
- Wal-Mart Stores, Inc. (WMT) Dividend Stock Analysis - 4/25/2025
- Abbott Laboratories (ABT) Dividend Stock Analysis - 4/18/2025
What are Section 199A Dividends?
Posted by D4L | Friday, September 24, 2021 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.