A Tax Break (Up to 20%!) for Dividend Investors? It’s True

If you own any real estate investment trusts (REITs), make sure you forward this article along to your tax advisor! Historically, REIT distributions have been considered nonqualified dividends by the IRS. This means they usually get taxed at your regular income tax rate. However, REIT investors now benefit from the same tax break that “pass through” businesses receive. As a general rule, REIT investors are now allowed to deduct 20% of their REIT dividend income. (This tax update is adapted from our new book How to Retire on Dividends: Earn a Safe 8%, Leave Your Principal Intact . You can grab your copy here .)… Read more