A Real Estate Investment Trust (“REIT”) is a corporation that combines the capital of many investors to acquire or provide financing for income-producing real estate. A corporation must meet several requirements to qualify as a REIT, but one of the most important is that it must distribute at least 90 percent of its taxable income, excluding capital gains, to its shareholders annually. When a corporation elects REIT status, it is permitted to deduct dividends paid to its shareholders from its federal tax bill. For additional information about REITS, please visit our industry trade association’s website at www.reit.com.
