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  • msf January 2020
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Qn re: Tax Reform Makes Real Estate Investment Trusts More Attractive

See below. For those of us that happen to own REIT mutual funds in non-retirement accounts, how exactly does this 'advantage' work, when we file our taxes? Thanks.

FAMag: Tax Reform Makes Real Estate Investment Trusts More Attractive
January 6, 2020 • Jeff Stimpson

... According to the IRS, income from a REIT in a mutual fund will be considered QBI, Cordes said, adding that this deduction is available for all shareholders regardless of their income level or whether they itemize or take the standard deduction.

REITs once had a worse reputation regarding taxes—a bias that lingers even after tax reform. “Most high-net-worth clients are not aware of the additional tax benefits afforded to them for REIT investments created by the TCJA,” said Davin Carey, senior wealth advisor of Carey & Hanna Tax & Wealth Planners in Oxnard, Calif., and a representative of Avantax Investment Services.


  • msf
    edited January 2020
    The Section 199A income shows up in box 5 of your 1099-DIV. Add these all up, take 20%, and enter it in 1040 line 9 as the qualified business deduction (QBI).

    There are worksheets for doing this calculation, but if all your QBI is from REITs, that's about all there is to it.
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