FYI: There isn’t a lot for investors to get excited about under the U.S.’s new Tax Cuts and Jobs Act—with one major exception: The effective tax rate on real estate investment trusts has been slashed.
The law enacted this year, which focuses mainly on overhauling taxes on business income and earned income for individuals, gives REIT investors the same new perk that it gives to owners of pass-through entities, such as partnerships and limited liability companies: a 20% deduction on income.
This drops the top effective tax rate on REIT dividends from 37%, which is the highest income-tax rate under the new law, to 29.6%, according to the National Association of Real Estate Investment Trusts.
Regards,
Ted
https://www.barrons.com/articles/new-tax-plan-is-boon-for-reits-1538053200
