SIE practice questioneasyREITs
To maintain its special tax status, a Real Estate Investment Trust (REIT) must distribute at least what percentage of its taxable income to shareholders each year?
- A100%
- B75%
- C50%
- D90%✓ Correct answer
Explanation
Why D — 90%
A REIT generally must distribute at least 90% of taxable income to shareholders to maintain its special tax treatment. Other percentages may relate to different REIT tests or are not the required distribution threshold.
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