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How to pay less in taxes by making smart investment decisions
In addition, REITs are now somewhat more attractive to own outside of tax shelters, because they get a Section 199A 20% reduction in taxes. That is, whatever income they pass through, you get to deduct 20% of that. So if you're in the 22% tax bracket, you'll owe a net 17.6% (80% x 22%).
Still higher than the 15% cap gains rate, but not by very much. Something to consider if you're looking to generate income, or if you've already filled your IRA with bonds that are taxed at a higher rate.
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Still higher than the 15% cap gains rate, but not by very much. Something to consider if you're looking to generate income, or if you've already filled your IRA with bonds that are taxed at a higher rate.
http://www.2ndmarketcapital.com/reits/reit-benefits/ (quick and dirty summary)