AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
2min snip
293. Unpacking EACH Real Estate Investment Strategy: Pros, Cons, and Tax Benefits
Tax Smart Real Estate Investors Podcast
Taxation Insights on Real Estate Investment Trusts
When selling or liquidating Real Estate Investment Trust (REIT) shares, the taxation depends on the holding period: short-term capital gains rates apply for holdings under one year, while long-term rates apply for those held beyond a year. REITs are generally classified as non-passive investments, preventing passive losses from direct rentals or syndicates from being used to offset REIT income, except for individuals qualifying as real estate professionals or utilizing the short-term rental loophole. Unlike direct rental ownership, income from REITs is treated similarly to dividends from stock, categorized as non-passive portfolio income. This difference complicates the offsetting of losses from other rental investments. However, a notable advantage of REITs is their eligibility for the Qualified Business Income (QBI) deduction, allowing for a 20% deduction on qualified REIT dividends. This benefit is distinct from other types of stock investments and presents a unique tax advantage that should be considered by investors.
00:00
Transcript
Episode notes
Get the Snipd
podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any
moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share
& Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode