Return of capital to the shareholders

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Reference no: EM132515794

If an equity REIT pays a dividend in excess of 100% of its taxable income, that portion of the dividend will be deemed to be a return of capital to the shareholders, and, as such

a) Will be tax exempt

b) Will be tax deferred by reducing the tax basis of the shareholders

c) Will be taxed as a capital gain

d) Will be taxed immediately as ordinary income

Reference no: EM132515794

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