Monday, February 06, 2017

Moving REITs to Non-Taxable Accounts

After reviewing the tax consequences of REITs for 2016, I've decided to move my REIT investments REIT investments to our IRAs and Roth IRAs, non-taxable  accounts.

Here are my reasons:
  1.  REIT dividends are taxed as ordinary income.   There is no tax benefit to earning REIT dividends in a taxable account.
  2. Part of REIT dividends are a non-taxable return of capital, which requires are reduction of cost basis.  This adjustment can be tedious to keep the records and isn't required for non-taxable accounts.
I started making the move last week and will continue to do so in the upcoming weeks

or more on Strategies and Plans, check back  Mondays  for a new segment.

This is not financial, investment or tax advice. Please consult a professional advisor.

Copyright © 2017 Achievement Catalyst, LLC

No comments: