🏦LTB
← Series 7: Investment Information & Recommendations
Series 7 practice questioneasyAlternative Investments — REITs

A Real Estate Investment Trust (REIT) must distribute what minimum percentage of its taxable income to shareholders to maintain its tax-advantaged status?

  1. A50%
  2. B75%
  3. C90%✓ Correct answer
  4. D100%
Explanation

Why C — 90%

To qualify for the favorable tax treatment (pass-through of income without corporate-level taxation), a REIT must distribute at least 90% of its taxable income to shareholders as dividends. REITs must also derive at least 75% of gross income from real estate-related sources and have at least 75% of total assets invested in real estate.

Turn it into reps

Reading one answer is not the same as being ready

Lucky the Banker is a free practice app with 755+ Series 7 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.

Practice Series 7 freeSeries 7 exam guide
Related Investment Information & Recommendations questions