SIE practice questionmediumREITs
Which statement about REITs is correct?
- AREITs cannot be publicly traded
- BREITs pass through tax losses to investors
- CREITs must invest exclusively in residential real estate
- DDividends from REITs are generally taxed as ordinary income✓ Correct answer
Explanation
Why D — Dividends from REITs are generally taxed as ordinary income
REIT dividends are generally taxed as ordinary income. REITs do not pass through tax losses like partnerships, may invest in many real estate sectors, and many REITs are publicly traded.
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